Core Library

Investing in International Shares

COVID-19 taught us many things this year, including that we really live in a small world after all. It has also forced many investors to review their portfolio mix and consider international shares.\ \ Why International Shares?\ \ The Australian share market represents less than 2% of the valuation of global share markets.\ \ With the global economy showing positive signs of a recovery on the back of an approved COVID vaccine, many Australian investors should seek increased flexibility and diversification in their portfolios.\ \ Global markets create opportunities for investors seeking exposure to quality companies whilst also providing the benefit of eliminating the relative limitations of the Australian stock exchange.\ \ How do I invest in International Shares?\ \ There are three main ways to invest in international equities:

  1. Managed fund
  2. Exchange traded funds (ETFs)
  3. Direct investment (Shares)

Core’s philosophy is to invest directly where possible as this provides you with the ability to trade and hold international shares directly which enhances control, flexibility and transparency.\ \ Core will trade your instruction on international markets. For example, one of our clients recently acquired 10,000 shares in Apple Inc as he has always wanted to own stock directly in Apple and wanted to diversify his equity portfolio.\ \ Core’s portfolios include exposure to a range of global shares including:\ • Apple Inc.\ • Berkshire Hathaway Inc. (class B)\ • Tesla Inc.\ • Alibaba Group Holding Ltd.\ • Microsoft Corp.\ \ Through its portfolios Core enables clients to invest directly into specific international companies with direct trading capability on 16 international stock exchanges.\ \ What are the risks?\ \ There is always the risk that any investment will not perform as well as you hoped it would and that losses can occur.\ \ While some of the risks of investing in international shares are similar to investing in domestic shares, currency risk, regulatory risk and political risk are other key considerations.\ \ There may also be different tax and reporting responsibilities when investing in overseas shares.\ \ Please contact your Senior Advisor if you would like to know more about investing in international shares or if you wish to acquire shares in a specific company listed on an overseas stock exchange.