Looking Abroad When Investing in Equities

“China’s current market size is nine times larger than Australia and will rise from 1 per cent of weight in global indices to 9 per cent. Tevfik (Credit Suisse) estimates that our share of regional indices will halve from 18 per cent to 9 per cent. In other words, global investors will suck $140 billion, or 10 per cent, of the ASX market capitalisation.” Australian Financial Review – 22nd June 2015.

 Even more reason to look abroad when investing in equities. Providence currently has a higher weighting to International Equities than Australian Equities unhedged which has served portfolios well.

 MSCI World-ex AUS

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