Antonios “Tony” Antoniou is the chief executive officer of Financial Research, Training & Consulting, LLP. Over the course of his career, Antonios Antoniou has established himself as a highly effective manager and business leader.
Although the concepts of management and leadership share many of the same characteristics, there are a number or key differences between them. Successful managers must demonstrate the ability to execute a strategic plan by dividing it into small pieces and distributing tasks among team members. Managers must also establish processes and procedures to guide a team and anticipate needs that may arise in the future.
While management deals primarily with the execution of tasks and the delegation of responsibilities, leadership involves less tangible attributes such as honesty, integrity, and inspiration. The best leaders help their teams perform to their maximum potential and communicate the details of projects effectively. When necessary, leaders must be able to challenge established procedures and think outside the box, always searching for the most efficient way to achieve their objectives.
The chief executive officer of Financial Research, Training & Consulting, LLP, Antonios “Tony” Antoniou spent the better part of 15 years as a professor of finance and economics at Brunel University and Durham University. During his time in academia, Antonios Antoniou taught courses in several areas of global finance.
In the wake of rapid globalization occurring over the past several decades, winners and losers have emerged in regions throughout the world. Perhaps no group has benefited more from globalization than the so-called “global middle class,” which includes emerging economies such as those of China, India, Brazil, and Indonesia. While the top 1 percent of the world’s earners have seen significant gains from globalization, those at the bottom of the economic ladder have seen their situation in the world economy worsen.
According to economist Branko Milanovic, ensuring shared prosperity must involve high growth rates among nations at the bottom, which has already occurred in places such as India and China. Milanovic also suggests a global wealth redistribution plan, although efforts to date have been unenthusiastic at best. Finally, Milanovic contends that free migration of labor would allow people the chance to prosper, regardless of where they end up.
Tony Antoniou and his co-authors point out that investors’ portfolios generally contain more domestic than international stocks, even though it is better in theory to diversify. Known as home bias, the principle holds that investors prefer local stocks, as diversifying internationally is believed to entail additional risks such as exchange rate risk and restrictions on capital flows.
Despite these limitations, the call to obtain international diversification benefits led to the development of country/regional funds. Furthermore, more foreign companies have listed on stock exchanges in developed markets, and multinational stocks are often listed in domestic markets. This has produced an environment where some international diversification benefits can still be derived.
Using better estimation methods and creating local diversification portfolios that imitated foreign equity indices, the study showed that there were actually no significant benefits to having an internationally diversified portfolio. A diversified local portfolio can produce results that are similar to an internationally diversified one.