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Health & Fitness

International Investing - France

The world is a big place – there are over 190 countries and 7 billion people in the world, which really boggles the mind if you sit down and think about it. In addition to being an interesting intellectual exercise, this fact can also have broad implications for your investments and your financial future. It is easy to stay focused on U.S. firms, news, and events during the day-to-day grind, but it is always important to be aware of your surroundings – especially when it comes to your investments. With that in mind, this series of articles will focus on countries and investment opportunities outside the United States that you might not usually hear about.

As always, be sure to consult a financial services professional familiar with both the potential investment and your unique financial situation before embarking on any investment program.

France

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France is almost universally recognized as a center of culture, cuisine, and the arts – tourists from around the world visit the country to enjoy a taste of the French experience, enjoy the arts, and sample the cuisine. French gastronomy is now actually a protected intangible on the world heritage list, published by UNESCO. France, however, is much more than cultural, the arts, and a certain ambience – while all of these items are excellent, there is much more to explore.

When evaluating the international investment community, there are several reasons why France might be added to your international investment portfolio. The French economy is the 2nd most powerful economic force in the E.U., and partnering with Germany, dominates many of the discussions and regulatory issues that come out of the E.U. Additionally, over 30 French firms hold positions in the global 500, and the nation has an incredibly diversified industrial base. Pharmaceuticals, aerospace, chemicals, agri-food, and nuclear sciences are all industries that are well represented within the French economy. A highly educated and multilingual workforce, world-renowned universities, and a culture that is highly focused on analytic data complete an environment that creates a potentially lucrative investing environment.

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When looking at investing in France, there are two primary ways to go about it – ADRs or direct purchases. An ADR is basically a certificate held by a U.S. banking institution that represents a certain number of shares in the foreign company, and is held by the U.S. institution. This helps to cut down on the administrative fees and other costs that would otherwise be incurred. For more direct exposure, you can also purchase shares directly from French stock exchanges if your broker offers those services to its retail investor base (you and me).

Some of the largest and most well-known French firms that are available for investment are BNP Paribas (financial services), Total (energy), Sanofi (pharmaceuticals), GDF Suez (diversified energy conglomerate), France Telecom (telecommunications), and Societe Generale (financial services). Several ETFs with significant exposure to the French economy are iShares MSCI France ETF, SPDR Euro STOXX 50 ETF, and iShares MSCI EMU ETF.

As always, I have attached some links with more information

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