While Australian shares have performed quite well historically, they represent less than 2% of the world share market, and are heavily concentrated in resources companies and the ‘Big 4’ banks.
Why does this matter?
With the peak of the mining boom over, a slowing Chinese economy and house prices widely considered as ‘expensive’, placing all your bets on the Australian economy is perhaps unwise…
There are other ways to grow and protect your wealth
Relying only on Australian shares, term deposits and property means that you miss out on the growth of the world’s most innovative companies such as Google and Microsoft.
International shares add an ‘overseas flavour’ to your investment pie, allowing you access to a broader range of industries and reducing reliance on the performance of the Australian economy.
Investing overseas is not so foreign
According to the 2015 World Wealth Report, the wealthiest 1% of Australians (such as private banking clients and BRW Rich 200 list entrepreneurs) invested more than 30% of their wealth outside our region. Importantly, these wealthy investors have enjoyed healthy returns in recent years:
It all sounds good, but how do you access international shares?
It has never been easier and more cost effective to invest in some of the world’s largest and most profitable businesses. It’s as easy as investing via fund managed by our investment professionals – the Ibbotson International Shares Core Fund.