Dziuba P. Evolution of International Portfolio Investing Paradigm.

The bi-paradigmatic model of international portfolio investing theory is developed. Core stages of portfolio and value investing paradigms evolution, preconditions and terms of their shifts are revealed. Prospects of international portfolio investing theory are defined. Comparative analysis of both paradigms is carried out, their epistemological features and tangency points are defined. Independent theories and approaches that do not fall within the paradigm are identified, their position in international portfolio investing theory are defined, their relationship with its other components is determined. The existence of contradiction between portfolio paradigm basic concepts such as the efficient portfolio concept and the diversification concept is justified. This contradiction is one of the paradigm development and improvement factors. The most widely used approaches to international investment portfolios optimization are revealed and broken down into types. The concept of international investment portfolios diversification is proved to be the new stage of international portfolio investing paradigm evolution. Its appearance is proved to reflect the paradigm response to important shifts in world economy and international economic relations in that time. The significance of investment portfolios international diversification is shown to reduce in the course of time and during periods of markets increased volatility. Home bias as one of the most widely spread behavioral deviations of investors’ decisions from rational basis is explored. It is also recognized as the factor impeding international flows of portfolio investments. Local and international factors of securities premiums and main international models of their estimation are considered. The dual and overall impact of international factors on expected returns is justified. The level of systematic risk turns out to be smaller in international market than in domestic markets. Risks and returns of individual equity markets, their dynamics and interrelation, particularly during markets increased volatility periods are calculated and analyzed. The methodology of asymmetry in risks and returns dynamics evaluation is developed, its testing using the empirical data is carried out. Structural asymmetry persistent frames are detected. Exchange rate risks of portfolio investing in frontier equity markets including Ukraine in terms of USD and EUR are estimated. The methodology of global aggregated risk aversion assessment is developed; its empirical testing is carried out. The dynamics and structure of global portfolio liabilities and international portfolio liabilities of Ukraine are analyzed. Trends and patterns of their development are defined. Imbalances in the global market of international portfolio investments are ascertained, the special local equity market external filling ratio is developed for their investigation. The multi-criterion clustering of 66 markets of different types using the k-means method is conducted, six established patterns of attracting foreign portfolio investments on equity markets are defined. Statistical and substantive features of defined clusters are singled out.