International Investing - Finland

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.

Finland

Finland may be best known to tourists for its landscape and scenery, but the country is also home to such famous firms as Nokia and the phenomenon that is Angry Birds. Basing your opinion only on the country’s Nordic scenic value generates an incomplete picture. Finland is home to a business-friendly government, stable political environment, highly skilled workforce, and a focus on high-tech manufacturing.

Some of the most interesting and appealing aspects of Finland that could certainly make it a destination for international investment dollars are as follows. According to the International Transparency Index, Finland is one of the least corrupt countries in the world and is also known for the minimal red tape that is requires from business. In addition to this open economic structure, the extensive partnerships between Finnish universities and corporations and a strong focus on technical skills such as engineering and manufacturing combine to create very hospitable business environment. The World Economic Forum’s 2010-2011 report confirms this standing– Finland has the best availability of scientists and engineers in the world

When looking at investing in Finland, 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 Finnish stock exchanges if your broker offers those services to its retail investor base (you and me).

Finland is, of course home to Nokia and Angry Birds, but there are several other global giants that call Finland home, and might be of interest for your investment dollars. These include Sampo (insurance services), KONE (high-skill manufacturing), and Fortum Corporation (alternative energy production). ETFs with significant exposure to the Finnish economy include the FTSE Nordic 30 ETF, S&P International Developed High Beta Portfolio, and S&P Local Farmer & Forestry Index Fund.

As always, I have attached some links with more information

Happy Reading!

http://www.facc-usa.com/

http://internationalinvest.about.com/od/globalmarkets101/a/Guide-To-Investing-In-Finland.htm

http://www.investinfinland.fi/why-finland/competent-professionals/11

http://www.forbes.com/global2000/#page:1_sort:0_direction:asc_search:_filter:All