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Offshore income beckons

DID you know that:

* 70% of Coca-Cola’s revenue is generated outside the USA?

* Other internationally famous brand names such as Sony, Toyota, Glaxo and Adidas also derive the majority of their income offshore?

* National Australia Bank derives 43% of its revenue from outside Australia?

* None of the companies supplying the top 10 brands in the world are listed on the Australian stock exchange? The top 10 are Microsoft, Coca-Cola, McDonalds, IBM, Ford, Disney, Nokia, General Electric, AT&T, and Intel.

There is talk of a number of European exchanges merging. Already, the Australian and New Zealand exchanges are engaged in serious discussions about merger.

Australian companies such as Lend Lease are relocating their key staff overseas.

What does all of this mean to the average Australian investor?

Falling tariff barriers, fewer financial controls and rapidly spreading technology means that the world has become a single and simply accessible market.

It also means that we, in Australia, need to be aware of the immense market that exists outside our shores.

The fact that approximately 98 per cent of the world’s capitalisation is outside Australia means that a truly balanced portfolio needs to have a substantial exposure to the international sector.

This is something that financial planners have been saying for some time.

The degree to which you choose to expose your portfolio to international investments will depend upon the degree of risk that you are willing to take.

However, we can’t really ignore this vast market that exists out there.

The easiest and most effective way to access this is via International Managed Funds that are provided by such groups as BT Funds Management, Colonial First State Fund Managers and Zurich among others.

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