A majority of portfolio managers expect to increase for- eign equity holdings, according to a new survey by Citibank.
Among 226 portfolio managers interviewed for Citibank by Andrews Research Associates, 69% said they expect to increase their foreign equity holdings, while 27% expect to decrease holdings.
According to the survey, American Depositary Receipts are the preferred way to purchase an interest in foreign equities.
Citibank, the main unit of Citicorp, and other American banks run ADR programs which enable investors who otherwise would have to buy shares in overseas markets to buy receipts on shares held in the banks' vaults.
The receipts entitle the investors to collect dividends and capital gains on the shares.
In the survey, 55% of the respondents said they anticipate growth in the use of ADRs. Nearly 60% said all of their foreign equity holdings arepurchased in the form of ADRs.
Foreign equity holdings in the U.S. has grown to $350 billion in 1995 from $17 billion in 1981, according to the Securities Industry Association.
Citibank said analysts expect that total to grow to $1 trillion by 2000.