How global managed funds may help Australian share market investors
Global markets staged something of a comeback during 2013. It is a timely reminder of the growth potential of global economies. In fact, more than 90 per cent of the world's corporate profits are generated outside Australia.
Global equities offer a range of opportunities for Australian investors, including:
- the ability to diversify portfolios heavily weighted towards the Australian share market, currency and economy
- access to fast-growing emerging markets, including China, India and Brazil.
- access to broad and mature sectors that are not well represented in the Australian share market, including technology and pharmaceuticals.
Global equities give Australian investors access to broad and mature sectors that are not well represented in the Australian share market
How can I include global equities in my portfolio?
A majority of Australian investors choose to invest in global equities via managed funds as they provide the resources and services of professional funds management. Fund managers constantly evaluate their fund's portfolio, regularly taking into account economic trends, industry themes and the stock selection process.
As an investor, you can choose from a wide range of global managed funds. Some offer very general exposure to global markets, while others apply a more focused strategy based on a particular theme.
To find out more about the world of global investing and what's right for you, talk to your financial adviser.