What Exposure Do KFG Portfolios Have To Greece?

Nearly three years since it began, the European sovereign debt crisis continues to create great uncertainty in global financial markets. This is understandably an anxious time for investors. The crisis has raised questions about not only the sustainability of sovereign debt burdens in Europe, but about the future of theEU’s  common currency experiment.

At a wider level, investors globally are expressing concern about the impact of the crisis on economic growth rates and the financial system itself. However, the current uncertainty is nowhere near the levels reached during the Lehman crisis of late 2008.  Policymakers in the major economies, both inside and outside Europe, have made contingency plans to ensure liquidity is made available in the event of any future strains in credit markets.

We recently checked with Dimensional Fund Advisor to inquire about the level of Greek debt and equities they carry in the fund’s we have in many portfolios.

DFA has zero exposure to Greek government debt, as Greece is not eligible for our fixed income strategies. Our exposure to Greek equities is minimal, and they recently suspended further purchases in that country for the time being.

We understand the anxiety of clients at this time. Like you, we do not know what the future holds. But we do know that markets incorporate all known information and that the widespread anxieties are already reflected in prices.

Finally, you can be confident that our disciplined and diversified investment processes, the flexibility of our approach, and the 40 years of investment experience position us well to continue to manage our portfolios in you best interests.

We are always happy to answer your questions and stand ready to provide any further clarification you need.  If you would like to read more from DFA you can download an artilce by clicking here.

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