Trend-setters look for share in overseas wealth

24 August 2001

CommSec Director Mr Paul Rickard stated today that international diversification of private investor’s portfolios is finally becoming a priority with Australia’s investors as evidenced by recent trends in international investment.

Recent figures provided by the Australian Bureau of Statistics point to an increase of $2.8 billion in overseas assets held by Australian managed funds*. CommSec experience confirms a similar increase in interest for international investment opportunities by individual investors with overwhelming demand for its international investing seminars held across the country.

"At least 20% of an investor’s portfolio should be devoted to international investments. It is quite healthy to look outside our own backyard for investment opportunities and those investors that are taking personal charge of their portfolios are setting the trend," said Rickard.

Mr Rickard believes these trend-setting Australian investors are adopting a new approach in order to diversify their investment portfolios internationally. "These investors know they should diversify their portfolios in order to lessen any possible risk but they also want to benefit from the higher long term returns offered by world sharemarkets and growth industries like pharmaceuticals and biotechnology where Australia is not a big player. This means that, increasingly, investors are looking for easy ways to invest in shares outside Australia."

To keep up with this growing demand, CommSec has recently made available Colonial First State's Geared Global Share Fund which provides investors with simple access to global companies with an internal gearing mechanism generating magnified returns.

For a special Initial Offer Period to 31 August, CommSec has made available units in the Geared Global Share Fund at the fixed price of $1.00 and has waived the usual 4% entry fee. Rickard noted that interest during the first 10 days of the offer has far exceeded initial projections with over 45,000 requests for information.

This initial offer is only available through CommSec and only until 3pm on Friday 31 August. "The Geared Global Share Fund is an ideal opportunity for investors to diversify internationally by grabbing their share of the other 98% of global stockmarkets" said Rickard.

"The Fund removes the impediments and many of the risks involved in investing internationally. The Fund allows investors to diversify into global shares by accessing the highly ranked Colonial First State Investment team's management expertise and knowledge of overseas markets and stocks."

The Geared Global Share Fund will be available from CommSec, Australia's leading online broker and provider of managed funds, at the special introductory offer for another week.

"Access to the Geared Global Share Fund prospectus and application form through CommSec is quick and easy. If clients are interested in the Colonial First State Geared Global Share Fund, they can obtain the prospectus with application form immediately by downloading from," Mr Rickard said.

After the Initial Offer Period closes on 31 August, the market will determine the price of units in the Fund and the 4% entry fee rebate will no longer apply.