Although defined contribution fund managers pay lip service to global investment opportunities, many DC plans actually have a “home bias” in their investments and are severely underweighted in their overseas exposure, according to a paper released by OppenheimerFunds, Inc.

According to the paper, there exist “significant misperceptions” about both U.S. and non-U.S. market performance. The study, which was developed from the results of a 1,000 DC plan investors conducted by Aurora Market Research, shows that 57% of respondents incorrectly believed the U.S. equity market has consistently been the world's top performer between 1970 and 2000. In reality, the U.S. equity market only held the top position twice during that 30-year period.

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