Foreign Exposure: How Much Do You Have?

Globalization is old news. It's no secret that many of the largest and most successful U.S.-based companies, such as  Coca Cola and  Procter & Gamble PG, have appealed to consumers around the world for decades. Many more companies without as long a history doing business overseas have been recalibrating their strategies to achieve broader reach. The shift makes sense. As the U.S. economy has slowed and competition has remained fierce, many firms have turned to emerging-market economies for growth.

About the Author Karen Dolan is director of fund analysis with Morningstar. Contact Author | Meet other investing specialists

However, by simply looking at the commonly reported "% foreign" statistic for funds you own, you wouldn't necessarily be able to tell that certain U.S. companies are highly dependent on international growth. That figure tells you where the companies held in the portfolio are domiciled, but not where they make their money.

I took a look at three prominent large-cap domestic-equity funds to see where the companies they own earn their revenue. To help limit the number of annual reports I had to scour, I chose concentrated funds and hunted down the geographic revenue breakdown for all of the companies they held. I found inspiration in a Fund Spy penned by my colleague Mike Breen in 2007, in which he first investigated this issue. Pat Dorsey also looked at the entire S&P 500 through this lens in January 2010 and found that 40% of the revenues came from outside the U.S.

  % U.S. Exposure by Domicile % U.S. Exposure by Revenues Oakmark Select 96% 60% Clipper 86% 65% Longleaf 83% 67%Figures above represent the percentage of stocks, not all assets. Percentage of revenues earned in the U.S. are based on the most recent annual report for the underlying fund holdings. A small number of companies did not disclose revenues by geography and were thus excluded from the overall calculation.

Of the three funds considered,  Oakmark Select displayPTip('OAKLX', 'OAKLX','YTD', '', '', '', '', '', '','msg','P'); had the highest U.S. weight by domicile, but the lowest exposure by revenue. Only three of the portfolio's 21 holdings record all of their sales in the U.S. Meanwhile, each of the fund's top five holdings collects more than one fourth of its revenues outside the U.S. Its top position,  Discovery Communications displayPTip('DISCK', 'DISCK','YTD', '', '', '', '', '', '','msg','P');, earns 35% of revenues overseas. Although U.S. consumers know the company for its successful cable TV programs such as the Discovery Channel and Animal Planet, what they may not know is that those very same brands are distributed across most markets with pay-TV offerings. Another holding in Oakmark Select's portfolio,  Texas Instruments displayPTip('TXN', 'TXN','YTD', '', '', '', '', '', '','msg','P');, has rather strong brand recognition among U.S. consumers, but only sees 11% of its overall sales originate at home.

On the flip side,  Longleaf Partners displayPTip('LLPFX', 'LLPFX','YTD', '', '', '', '', '', '','msg','P'); had the lowest U.S. weight by domicile and the highest exposure by revenue. The companies that grace the top of its portfolio are domiciled in the U.S., but also collect a large proportion of their revenues inside the U.S., helping to keep the revenue and domicile figures more in line with each other. For example, top holding  DirecTV displayPTip('DTV', 'DTV','YTD', '', '', '', '', '', '','msg','P'); earns 87% of its revenues inside the U.S., and top-five holding  Walt Disney displayPTip('DIS', 'DIS','YTD', '', '', '', '', '', '','msg','P'); earns 74% domestically. That's not to say the managers ignore the world beyond the U.S. Far from it, in fact: For two large holdings-- Dell displayPTip('DELL', 'DELL','YTD', '', '', '', '', '', '','msg','P'); and  Yum Brands displayPTip('YUM', 'YUM','YTD', '', '', '', '', '', '','msg','P');--the managers have often stated that the companies' international presence is what's most appealing to them. Dell and Yum Brands earn 47% and 60% of revenues, respectively, outside the U.S.

 Clipper displayPTip('CFIMX', 'CFIMX','YTD', '', '', '', '', '', '','msg','P'); is an interesting case. When Mike Breen first looked at this issue in 2007, he also studied Clipper's portfolio. At that time, the fund was 100% invested in U.S.-domiciled companies and he found that 65% of its underlying revenues were coming from the U.S. As of its most recent portfolio, the fund held 86% in U.S.-domiciled companies, but the cut of foreign revenues remained steady at 65%. One might say that the fund has transitioned to a much more global posture over the past four years, as it now owns more companies domiciled outside the U.S., but in reality its global exposure has remained the same.

While border lines are blurring, investment performance does still correlate with home markets. Thus, it's still important to view your domestic/foreign exposure through traditional lenses. For example, India-based  Infosys displayPTip('INFY', 'INFY','YTD', '', '', '', '', '', '','msg','P'); reported that 65.8% of its revenues originated in the U.S. for its fiscal year ended March 2010, but its stock is largely still driven by what's happening in the India market. Currency effects alone mean that where a company trades does have a substantial impact on stock performance.

In short, it is instructive to consider where companies you're exposed to do business alongside understanding where they are located. Morningstar is collecting and storing geographic exposure by revenues, but the data isn't reported in a uniform way. Furthermore, there is nothing even close to a standard among foreign-domiciled firms. But we are exploring ways to overcome these hurdles and hope to bring more systematic clarity to the geographic breakdown of stocks and funds in the future.

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Securities mentioned in this article Ticker Price($) Change(%) Morningstar Rating Morningstar Analyst Report With Morningstar Analyst reports you can get our expert Buy/Sell opinions on over 3,900 Stock and Funds Karen Dolan, CFA has a position in the following securities mentioned above: OAKLX PG DELL Find out about Morningstar's editorial policies. Video Reports Arnott: Market Hyped Up on... More Videos... Most Popular Related News Also in Fund Spy These Mutual Funds Aim to Deliver a Retirement PaycheckHow Three Funds Compensate for a Risky TraitFund Flows: Investors Turn on Bond Funds Sponsored Links Buy a Link Now Sponsor Center Please Wait... MUTUALFUNDS USA_DISCK,USA_CFIMX,USA_LLPFX,USA_OAKLX,USA_DTV,USA_KO,USA_DELL,USA_DIS,USA_PG,USA_TXN,USA_YUM,USA_INFY E0_USA_DISCK FO_USA_CFIMX FO_USA_LLPFX FO_USA_OAKLX E0_USA_DTV E0_USA_KO E0_USA_DELL E0_USA_DIS E0_USA_PG E0_USA_TXN E0_USA_YUM E0_USA_INFY &primaryKeyword=MUTUALFUNDS 2 {CommentWebService} OAS_AD('Bottom'); Content Partners Site Directory Site Map Our Products Corrections Help Advertising Opportunities Licensing Opportunities Glossary RSS Mobile Portfolio Affiliate Careers Company News International Sites: Australia Canada China France Germany Hong Kong Italy The Netherlands Norway Spain U.K. Stocks by: Title Ticker Popularity Interest Funds by: Title Symbol Popularity Interest Articles by: Title Date Popularity Interest Stock Groups by: Popularity Interest Favorites Title Fund Groups by: Popularity Interest Favorites Title Article Groups by: Popularity Interest Favorites Title Premium Stocks by: Title Ticker Popularity Interest Premium Funds by: Title Symbol Popularity Interest Premium Articles by: Title Date Popularity Interest Independent. Insightful. Trusted. Morningstar provides stock market analysis; equity, mutual fund, and ETF research, ratings, and picks; portfolio tools; and option, hedge fund, IRA, 401k, and 529 plan research. Our reliable data and analysis can help both experienced enthusiasts and newcomers. © Copyright 2010 Morningstar, Inc. All rights reserved. Please read our Terms of Useand Privacy Policy.Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Russell 2000 quote is 10 minutes delayed. var HeaderBox = initBoxQuote("AutoCompleteBox","AutoCompleteDropDown"); HeaderBox.IdleDisplayMsg = ""; HeaderBox.LocalRegion="USA"; HeaderBox.SetPreference('USA','EN',32); var FooterBox = initBoxQuote("AutoCompleteBoxFooter","AutoCompleteDropDownFooter"); FooterBox.IdleDisplayMsg = ""; FooterBox.LocalRegion="USA"; FooterBox.SetPreference('USA','EN',32); //clears all content/image boxes-------------------------------------------------------------------------------------- var imageIDs=new Array('siteDirectoryContent', 'siteMapContent', 'productsContent'); //content boxes .mi_row3{display: none} var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-16669347-1']); _gaq.push(['_setDomainName', '.morningstar.com']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); var Name = $('meta[name=DC.Creator]').attr("content").split(','); var Title = $('meta[name=DC.Title]').attr("content"); var URL = window.location.href; var Author = Name[1] + " " + Name[0]; var PubDate = $('meta[name=DC.Date]').attr("content"); _gaq.push(['_trackEvent', 'Article Title From Morningstar', Title, URL]); _gaq.push(['_trackEvent', 'Author Name From Morningstar', Author, URL]); _gaq.push(['_trackEvent', 'Article URL From Morningstar', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date From Morningstar', PubDate, URL]); _gaq.push(['_trackEvent', 'Article Title', Title, URL]); _gaq.push(['_trackEvent', 'Author Name', Author, URL]); _gaq.push(['_trackEvent', 'Article URL', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date', PubDate, URL]);

However, by simply looking at the commonly reported "% foreign" statistic for funds you own, you wouldn't necessarily be able to tell that certain U.S. companies are highly dependent on international growth. That figure tells you where the companies held in the portfolio are domiciled, but not where they make their money.

I took a look at three prominent large-cap domestic-equity funds to see where the companies they own earn their revenue. To help limit the number of annual reports I had to scour, I chose concentrated funds and hunted down the geographic revenue breakdown for all of the companies they held. I found inspiration in a Fund Spy penned by my colleague Mike Breen in 2007, in which he first investigated this issue. Pat Dorsey also looked at the entire S&P 500 through this lens in January 2010 and found that 40% of the revenues came from outside the U.S.

Of the three funds considered,  Oakmark Select had the highest U.S. weight by domicile, but the lowest exposure by revenue. Only three of the portfolio's 21 holdings record all of their sales in the U.S. Meanwhile, each of the fund's top five holdings collects more than one fourth of its revenues outside the U.S. Its top position,  Discovery Communications displayPTip('DISCK', 'DISCK','YTD', '', '', '', '', '', '','msg','P');, earns 35% of revenues overseas. Although U.S. consumers know the company for its successful cable TV programs such as the Discovery Channel and Animal Planet, what they may not know is that those very same brands are distributed across most markets with pay-TV offerings. Another holding in Oakmark Select's portfolio,  Texas Instruments displayPTip('TXN', 'TXN','YTD', '', '', '', '', '', '','msg','P');, has rather strong brand recognition among U.S. consumers, but only sees 11% of its overall sales originate at home.

On the flip side,  Longleaf Partners displayPTip('LLPFX', 'LLPFX','YTD', '', '', '', '', '', '','msg','P'); had the lowest U.S. weight by domicile and the highest exposure by revenue. The companies that grace the top of its portfolio are domiciled in the U.S., but also collect a large proportion of their revenues inside the U.S., helping to keep the revenue and domicile figures more in line with each other. For example, top holding  DirecTV displayPTip('DTV', 'DTV','YTD', '', '', '', '', '', '','msg','P'); earns 87% of its revenues inside the U.S., and top-five holding  Walt Disney displayPTip('DIS', 'DIS','YTD', '', '', '', '', '', '','msg','P'); earns 74% domestically. That's not to say the managers ignore the world beyond the U.S. Far from it, in fact: For two large holdings-- Dell displayPTip('DELL', 'DELL','YTD', '', '', '', '', '', '','msg','P'); and  Yum Brands displayPTip('YUM', 'YUM','YTD', '', '', '', '', '', '','msg','P');--the managers have often stated that the companies' international presence is what's most appealing to them. Dell and Yum Brands earn 47% and 60% of revenues, respectively, outside the U.S.

 Clipper displayPTip('CFIMX', 'CFIMX','YTD', '', '', '', '', '', '','msg','P'); is an interesting case. When Mike Breen first looked at this issue in 2007, he also studied Clipper's portfolio. At that time, the fund was 100% invested in U.S.-domiciled companies and he found that 65% of its underlying revenues were coming from the U.S. As of its most recent portfolio, the fund held 86% in U.S.-domiciled companies, but the cut of foreign revenues remained steady at 65%. One might say that the fund has transitioned to a much more global posture over the past four years, as it now owns more companies domiciled outside the U.S., but in reality its global exposure has remained the same.

While border lines are blurring, investment performance does still correlate with home markets. Thus, it's still important to view your domestic/foreign exposure through traditional lenses. For example, India-based  Infosys displayPTip('INFY', 'INFY','YTD', '', '', '', '', '', '','msg','P'); reported that 65.8% of its revenues originated in the U.S. for its fiscal year ended March 2010, but its stock is largely still driven by what's happening in the India market. Currency effects alone mean that where a company trades does have a substantial impact on stock performance.

In short, it is instructive to consider where companies you're exposed to do business alongside understanding where they are located. Morningstar is collecting and storing geographic exposure by revenues, but the data isn't reported in a uniform way. Furthermore, there is nothing even close to a standard among foreign-domiciled firms. But we are exploring ways to overcome these hurdles and hope to bring more systematic clarity to the geographic breakdown of stocks and funds in the future.

Return to Discuss

Be Seen. Be Heard. Become a Morningstar Contributor.Reach a readership of advisors, professionals, and active investors. Submit your commentaries for publication on Morningstar.com.

Securities mentioned in this article Ticker Price($) Change(%) Morningstar Rating Morningstar Analyst Report With Morningstar Analyst reports you can get our expert Buy/Sell opinions on over 3,900 Stock and Funds Karen Dolan, CFA has a position in the following securities mentioned above: OAKLX PG DELL Find out about Morningstar's editorial policies. Video Reports Arnott: Market Hyped Up on... More Videos... Most Popular Related News Also in Fund Spy These Mutual Funds Aim to Deliver a Retirement PaycheckHow Three Funds Compensate for a Risky TraitFund Flows: Investors Turn on Bond Funds Sponsored Links Buy a Link Now Sponsor Center Please Wait... MUTUALFUNDS USA_DISCK,USA_CFIMX,USA_LLPFX,USA_OAKLX,USA_DTV,USA_KO,USA_DELL,USA_DIS,USA_PG,USA_TXN,USA_YUM,USA_INFY E0_USA_DISCK FO_USA_CFIMX FO_USA_LLPFX FO_USA_OAKLX E0_USA_DTV E0_USA_KO E0_USA_DELL E0_USA_DIS E0_USA_PG E0_USA_TXN E0_USA_YUM E0_USA_INFY &primaryKeyword=MUTUALFUNDS 2 {CommentWebService} OAS_AD('Bottom'); Content Partners Site Directory Site Map Our Products Corrections Help Advertising Opportunities Licensing Opportunities Glossary RSS Mobile Portfolio Affiliate Careers Company News International Sites: Australia Canada China France Germany Hong Kong Italy The Netherlands Norway Spain U.K. Stocks by: Title Ticker Popularity Interest Funds by: Title Symbol Popularity Interest Articles by: Title Date Popularity Interest Stock Groups by: Popularity Interest Favorites Title Fund Groups by: Popularity Interest Favorites Title Article Groups by: Popularity Interest Favorites Title Premium Stocks by: Title Ticker Popularity Interest Premium Funds by: Title Symbol Popularity Interest Premium Articles by: Title Date Popularity Interest Independent. Insightful. Trusted. Morningstar provides stock market analysis; equity, mutual fund, and ETF research, ratings, and picks; portfolio tools; and option, hedge fund, IRA, 401k, and 529 plan research. Our reliable data and analysis can help both experienced enthusiasts and newcomers. © Copyright 2010 Morningstar, Inc. All rights reserved. Please read our Terms of Useand Privacy Policy.Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Russell 2000 quote is 10 minutes delayed. var HeaderBox = initBoxQuote("AutoCompleteBox","AutoCompleteDropDown"); HeaderBox.IdleDisplayMsg = ""; HeaderBox.LocalRegion="USA"; HeaderBox.SetPreference('USA','EN',32); var FooterBox = initBoxQuote("AutoCompleteBoxFooter","AutoCompleteDropDownFooter"); FooterBox.IdleDisplayMsg = ""; FooterBox.LocalRegion="USA"; FooterBox.SetPreference('USA','EN',32); //clears all content/image boxes-------------------------------------------------------------------------------------- var imageIDs=new Array('siteDirectoryContent', 'siteMapContent', 'productsContent'); //content boxes .mi_row3{display: none} var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-16669347-1']); _gaq.push(['_setDomainName', '.morningstar.com']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); var Name = $('meta[name=DC.Creator]').attr("content").split(','); var Title = $('meta[name=DC.Title]').attr("content"); var URL = window.location.href; var Author = Name[1] + " " + Name[0]; var PubDate = $('meta[name=DC.Date]').attr("content"); _gaq.push(['_trackEvent', 'Article Title From Morningstar', Title, URL]); _gaq.push(['_trackEvent', 'Author Name From Morningstar', Author, URL]); _gaq.push(['_trackEvent', 'Article URL From Morningstar', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date From Morningstar', PubDate, URL]); _gaq.push(['_trackEvent', 'Article Title', Title, URL]); _gaq.push(['_trackEvent', 'Author Name', Author, URL]); _gaq.push(['_trackEvent', 'Article URL', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date', PubDate, URL]);

On the flip side,  Longleaf Partners  had the lowest U.S. weight by domicile and the highest exposure by revenue. The companies that grace the top of its portfolio are domiciled in the U.S., but also collect a large proportion of their revenues inside the U.S., helping to keep the revenue and domicile figures more in line with each other. For example, top holding  DirecTV displayPTip('DTV', 'DTV','YTD', '', '', '', '', '', '','msg','P'); earns 87% of its revenues inside the U.S., and top-five holding  Walt Disney displayPTip('DIS', 'DIS','YTD', '', '', '', '', '', '','msg','P'); earns 74% domestically. That's not to say the managers ignore the world beyond the U.S. Far from it, in fact: For two large holdings-- Dell displayPTip('DELL', 'DELL','YTD', '', '', '', '', '', '','msg','P'); and  Yum Brands displayPTip('YUM', 'YUM','YTD', '', '', '', '', '', '','msg','P');--the managers have often stated that the companies' international presence is what's most appealing to them. Dell and Yum Brands earn 47% and 60% of revenues, respectively, outside the U.S.

 Clipper displayPTip('CFIMX', 'CFIMX','YTD', '', '', '', '', '', '','msg','P'); is an interesting case. When Mike Breen first looked at this issue in 2007, he also studied Clipper's portfolio. At that time, the fund was 100% invested in U.S.-domiciled companies and he found that 65% of its underlying revenues were coming from the U.S. As of its most recent portfolio, the fund held 86% in U.S.-domiciled companies, but the cut of foreign revenues remained steady at 65%. One might say that the fund has transitioned to a much more global posture over the past four years, as it now owns more companies domiciled outside the U.S., but in reality its global exposure has remained the same.

While border lines are blurring, investment performance does still correlate with home markets. Thus, it's still important to view your domestic/foreign exposure through traditional lenses. For example, India-based  Infosys displayPTip('INFY', 'INFY','YTD', '', '', '', '', '', '','msg','P'); reported that 65.8% of its revenues originated in the U.S. for its fiscal year ended March 2010, but its stock is largely still driven by what's happening in the India market. Currency effects alone mean that where a company trades does have a substantial impact on stock performance.

In short, it is instructive to consider where companies you're exposed to do business alongside understanding where they are located. Morningstar is collecting and storing geographic exposure by revenues, but the data isn't reported in a uniform way. Furthermore, there is nothing even close to a standard among foreign-domiciled firms. But we are exploring ways to overcome these hurdles and hope to bring more systematic clarity to the geographic breakdown of stocks and funds in the future.

Return to Discuss

Be Seen. Be Heard. Become a Morningstar Contributor.Reach a readership of advisors, professionals, and active investors. Submit your commentaries for publication on Morningstar.com.

Securities mentioned in this article Ticker Price($) Change(%) Morningstar Rating Morningstar Analyst Report With Morningstar Analyst reports you can get our expert Buy/Sell opinions on over 3,900 Stock and Funds Karen Dolan, CFA has a position in the following securities mentioned above: OAKLX PG DELL Find out about Morningstar's editorial policies. Video Reports Arnott: Market Hyped Up on... More Videos... Most Popular Related News Also in Fund Spy These Mutual Funds Aim to Deliver a Retirement PaycheckHow Three Funds Compensate for a Risky TraitFund Flows: Investors Turn on Bond Funds Sponsored Links Buy a Link Now Sponsor Center Please Wait... MUTUALFUNDS USA_DISCK,USA_CFIMX,USA_LLPFX,USA_OAKLX,USA_DTV,USA_KO,USA_DELL,USA_DIS,USA_PG,USA_TXN,USA_YUM,USA_INFY E0_USA_DISCK FO_USA_CFIMX FO_USA_LLPFX FO_USA_OAKLX E0_USA_DTV E0_USA_KO E0_USA_DELL E0_USA_DIS E0_USA_PG E0_USA_TXN E0_USA_YUM E0_USA_INFY &primaryKeyword=MUTUALFUNDS 2 {CommentWebService} OAS_AD('Bottom'); Content Partners Site Directory Site Map Our Products Corrections Help Advertising Opportunities Licensing Opportunities Glossary RSS Mobile Portfolio Affiliate Careers Company News International Sites: Australia Canada China France Germany Hong Kong Italy The Netherlands Norway Spain U.K. Stocks by: Title Ticker Popularity Interest Funds by: Title Symbol Popularity Interest Articles by: Title Date Popularity Interest Stock Groups by: Popularity Interest Favorites Title Fund Groups by: Popularity Interest Favorites Title Article Groups by: Popularity Interest Favorites Title Premium Stocks by: Title Ticker Popularity Interest Premium Funds by: Title Symbol Popularity Interest Premium Articles by: Title Date Popularity Interest Independent. Insightful. Trusted. Morningstar provides stock market analysis; equity, mutual fund, and ETF research, ratings, and picks; portfolio tools; and option, hedge fund, IRA, 401k, and 529 plan research. Our reliable data and analysis can help both experienced enthusiasts and newcomers. © Copyright 2010 Morningstar, Inc. All rights reserved. Please read our Terms of Useand Privacy Policy.Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Russell 2000 quote is 10 minutes delayed. var HeaderBox = initBoxQuote("AutoCompleteBox","AutoCompleteDropDown"); HeaderBox.IdleDisplayMsg = ""; HeaderBox.LocalRegion="USA"; HeaderBox.SetPreference('USA','EN',32); var FooterBox = initBoxQuote("AutoCompleteBoxFooter","AutoCompleteDropDownFooter"); FooterBox.IdleDisplayMsg = ""; FooterBox.LocalRegion="USA"; FooterBox.SetPreference('USA','EN',32); //clears all content/image boxes-------------------------------------------------------------------------------------- var imageIDs=new Array('siteDirectoryContent', 'siteMapContent', 'productsContent'); //content boxes .mi_row3{display: none} var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-16669347-1']); _gaq.push(['_setDomainName', '.morningstar.com']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); var Name = $('meta[name=DC.Creator]').attr("content").split(','); var Title = $('meta[name=DC.Title]').attr("content"); var URL = window.location.href; var Author = Name[1] + " " + Name[0]; var PubDate = $('meta[name=DC.Date]').attr("content"); _gaq.push(['_trackEvent', 'Article Title From Morningstar', Title, URL]); _gaq.push(['_trackEvent', 'Author Name From Morningstar', Author, URL]); _gaq.push(['_trackEvent', 'Article URL From Morningstar', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date From Morningstar', PubDate, URL]); _gaq.push(['_trackEvent', 'Article Title', Title, URL]); _gaq.push(['_trackEvent', 'Author Name', Author, URL]); _gaq.push(['_trackEvent', 'Article URL', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date', PubDate, URL]);

 Clipper is an interesting case. When Mike Breen first looked at this issue in 2007, he also studied Clipper's portfolio. At that time, the fund was 100% invested in U.S.-domiciled companies and he found that 65% of its underlying revenues were coming from the U.S. As of its most recent portfolio, the fund held 86% in U.S.-domiciled companies, but the cut of foreign revenues remained steady at 65%. One might say that the fund has transitioned to a much more global posture over the past four years, as it now owns more companies domiciled outside the U.S., but in reality its global exposure has remained the same.

While border lines are blurring, investment performance does still correlate with home markets. Thus, it's still important to view your domestic/foreign exposure through traditional lenses. For example, India-based  Infosys displayPTip('INFY', 'INFY','YTD', '', '', '', '', '', '','msg','P'); reported that 65.8% of its revenues originated in the U.S. for its fiscal year ended March 2010, but its stock is largely still driven by what's happening in the India market. Currency effects alone mean that where a company trades does have a substantial impact on stock performance.

In short, it is instructive to consider where companies you're exposed to do business alongside understanding where they are located. Morningstar is collecting and storing geographic exposure by revenues, but the data isn't reported in a uniform way. Furthermore, there is nothing even close to a standard among foreign-domiciled firms. But we are exploring ways to overcome these hurdles and hope to bring more systematic clarity to the geographic breakdown of stocks and funds in the future.

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Securities mentioned in this article Ticker Price($) Change(%) Morningstar Rating Morningstar Analyst Report With Morningstar Analyst reports you can get our expert Buy/Sell opinions on over 3,900 Stock and Funds Karen Dolan, CFA has a position in the following securities mentioned above: OAKLX PG DELL Find out about Morningstar's editorial policies. Video Reports Arnott: Market Hyped Up on... More Videos... Most Popular Related News Also in Fund Spy These Mutual Funds Aim to Deliver a Retirement PaycheckHow Three Funds Compensate for a Risky TraitFund Flows: Investors Turn on Bond Funds Sponsored Links Buy a Link Now Sponsor Center Please Wait... MUTUALFUNDS USA_DISCK,USA_CFIMX,USA_LLPFX,USA_OAKLX,USA_DTV,USA_KO,USA_DELL,USA_DIS,USA_PG,USA_TXN,USA_YUM,USA_INFY E0_USA_DISCK FO_USA_CFIMX FO_USA_LLPFX FO_USA_OAKLX E0_USA_DTV E0_USA_KO E0_USA_DELL E0_USA_DIS E0_USA_PG E0_USA_TXN E0_USA_YUM E0_USA_INFY &primaryKeyword=MUTUALFUNDS 2 {CommentWebService} OAS_AD('Bottom'); Content Partners Site Directory Site Map Our Products Corrections Help Advertising Opportunities Licensing Opportunities Glossary RSS Mobile Portfolio Affiliate Careers Company News International Sites: Australia Canada China France Germany Hong Kong Italy The Netherlands Norway Spain U.K. Stocks by: Title Ticker Popularity Interest Funds by: Title Symbol Popularity Interest Articles by: Title Date Popularity Interest Stock Groups by: Popularity Interest Favorites Title Fund Groups by: Popularity Interest Favorites Title Article Groups by: Popularity Interest Favorites Title Premium Stocks by: Title Ticker Popularity Interest Premium Funds by: Title Symbol Popularity Interest Premium Articles by: Title Date Popularity Interest Independent. Insightful. Trusted. Morningstar provides stock market analysis; equity, mutual fund, and ETF research, ratings, and picks; portfolio tools; and option, hedge fund, IRA, 401k, and 529 plan research. Our reliable data and analysis can help both experienced enthusiasts and newcomers. © Copyright 2010 Morningstar, Inc. All rights reserved. Please read our Terms of Useand Privacy Policy.Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Russell 2000 quote is 10 minutes delayed. var HeaderBox = initBoxQuote("AutoCompleteBox","AutoCompleteDropDown"); HeaderBox.IdleDisplayMsg = ""; HeaderBox.LocalRegion="USA"; HeaderBox.SetPreference('USA','EN',32); var FooterBox = initBoxQuote("AutoCompleteBoxFooter","AutoCompleteDropDownFooter"); FooterBox.IdleDisplayMsg = ""; FooterBox.LocalRegion="USA"; FooterBox.SetPreference('USA','EN',32); //clears all content/image boxes-------------------------------------------------------------------------------------- var imageIDs=new Array('siteDirectoryContent', 'siteMapContent', 'productsContent'); //content boxes .mi_row3{display: none} var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-16669347-1']); _gaq.push(['_setDomainName', '.morningstar.com']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); var Name = $('meta[name=DC.Creator]').attr("content").split(','); var Title = $('meta[name=DC.Title]').attr("content"); var URL = window.location.href; var Author = Name[1] + " " + Name[0]; var PubDate = $('meta[name=DC.Date]').attr("content"); _gaq.push(['_trackEvent', 'Article Title From Morningstar', Title, URL]); _gaq.push(['_trackEvent', 'Author Name From Morningstar', Author, URL]); _gaq.push(['_trackEvent', 'Article URL From Morningstar', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date From Morningstar', PubDate, URL]); _gaq.push(['_trackEvent', 'Article Title', Title, URL]); _gaq.push(['_trackEvent', 'Author Name', Author, URL]); _gaq.push(['_trackEvent', 'Article URL', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date', PubDate, URL]);

While border lines are blurring, investment performance does still correlate with home markets. Thus, it's still important to view your domestic/foreign exposure through traditional lenses. For example, India-based  Infosys  reported that 65.8% of its revenues originated in the U.S. for its fiscal year ended March 2010, but its stock is largely still driven by what's happening in the India market. Currency effects alone mean that where a company trades does have a substantial impact on stock performance.

In short, it is instructive to consider where companies you're exposed to do business alongside understanding where they are located. Morningstar is collecting and storing geographic exposure by revenues, but the data isn't reported in a uniform way. Furthermore, there is nothing even close to a standard among foreign-domiciled firms. But we are exploring ways to overcome these hurdles and hope to bring more systematic clarity to the geographic breakdown of stocks and funds in the future.

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Be Seen. Be Heard. Become a Morningstar Contributor.Reach a readership of advisors, professionals, and active investors. Submit your commentaries for publication on Morningstar.com.

Securities mentioned in this article Ticker Price($) Change(%) Morningstar Rating Morningstar Analyst Report With Morningstar Analyst reports you can get our expert Buy/Sell opinions on over 3,900 Stock and Funds Karen Dolan, CFA has a position in the following securities mentioned above: OAKLX PG DELL Find out about Morningstar's editorial policies. Video Reports Arnott: Market Hyped Up on... More Videos... Most Popular Related News Also in Fund Spy These Mutual Funds Aim to Deliver a Retirement PaycheckHow Three Funds Compensate for a Risky TraitFund Flows: Investors Turn on Bond Funds Sponsored Links Buy a Link Now Sponsor Center Please Wait... MUTUALFUNDS USA_DISCK,USA_CFIMX,USA_LLPFX,USA_OAKLX,USA_DTV,USA_KO,USA_DELL,USA_DIS,USA_PG,USA_TXN,USA_YUM,USA_INFY E0_USA_DISCK FO_USA_CFIMX FO_USA_LLPFX FO_USA_OAKLX E0_USA_DTV E0_USA_KO E0_USA_DELL E0_USA_DIS E0_USA_PG E0_USA_TXN E0_USA_YUM E0_USA_INFY &primaryKeyword=MUTUALFUNDS 2 {CommentWebService} OAS_AD('Bottom'); Content Partners Site Directory Site Map Our Products Corrections Help Advertising Opportunities Licensing Opportunities Glossary RSS Mobile Portfolio Affiliate Careers Company News International Sites: Australia Canada China France Germany Hong Kong Italy The Netherlands Norway Spain U.K. Stocks by: Title Ticker Popularity Interest Funds by: Title Symbol Popularity Interest Articles by: Title Date Popularity Interest Stock Groups by: Popularity Interest Favorites Title Fund Groups by: Popularity Interest Favorites Title Article Groups by: Popularity Interest Favorites Title Premium Stocks by: Title Ticker Popularity Interest Premium Funds by: Title Symbol Popularity Interest Premium Articles by: Title Date Popularity Interest Independent. Insightful. Trusted. Morningstar provides stock market analysis; equity, mutual fund, and ETF research, ratings, and picks; portfolio tools; and option, hedge fund, IRA, 401k, and 529 plan research. Our reliable data and analysis can help both experienced enthusiasts and newcomers. © Copyright 2010 Morningstar, Inc. All rights reserved. Please read our Terms of Useand Privacy Policy.Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. Russell 2000 quote is 10 minutes delayed. var HeaderBox = initBoxQuote("AutoCompleteBox","AutoCompleteDropDown"); HeaderBox.IdleDisplayMsg = ""; HeaderBox.LocalRegion="USA"; HeaderBox.SetPreference('USA','EN',32); var FooterBox = initBoxQuote("AutoCompleteBoxFooter","AutoCompleteDropDownFooter"); FooterBox.IdleDisplayMsg = ""; FooterBox.LocalRegion="USA"; FooterBox.SetPreference('USA','EN',32); //clears all content/image boxes-------------------------------------------------------------------------------------- var imageIDs=new Array('siteDirectoryContent', 'siteMapContent', 'productsContent'); //content boxes .mi_row3{display: none} var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-16669347-1']); _gaq.push(['_setDomainName', '.morningstar.com']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); var Name = $('meta[name=DC.Creator]').attr("content").split(','); var Title = $('meta[name=DC.Title]').attr("content"); var URL = window.location.href; var Author = Name[1] + " " + Name[0]; var PubDate = $('meta[name=DC.Date]').attr("content"); _gaq.push(['_trackEvent', 'Article Title From Morningstar', Title, URL]); _gaq.push(['_trackEvent', 'Author Name From Morningstar', Author, URL]); _gaq.push(['_trackEvent', 'Article URL From Morningstar', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date From Morningstar', PubDate, URL]); _gaq.push(['_trackEvent', 'Article Title', Title, URL]); _gaq.push(['_trackEvent', 'Author Name', Author, URL]); _gaq.push(['_trackEvent', 'Article URL', URL, Title + "(by " + Author + " on " + PubDate + ")"]); _gaq.push(['_trackEvent', 'Publish Date', PubDate, URL]);

In short, it is instructive to consider where companies you're exposed to do business alongside understanding where they are located. Morningstar is collecting and storing geographic exposure by revenues, but the data isn't reported in a uniform way. Furthermore, there is nothing even close to a standard among foreign-domiciled firms. But we are exploring ways to overcome these hurdles and hope to bring more systematic clarity to the geographic breakdown of stocks and funds in the future.

Be Seen. Be Heard. Become a Morningstar Contributor.Reach a readership of advisors, professionals, and active investors. Submit your commentaries for publication on Morningstar.com.

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