The new tech boom
Apple. Google. Microsoft. Facebook.
All are household names, and if you’re like most people, you use their products every day.
They’re also huge businesses.
Facebook only listed on New York Stock Exchange 5 years ago. Now it’s valued at more than $500 billion1.
Apple is fast approaching $1 trillion in value2, which is two thirds the size of the entire Australian share market.
How do I get some?
The technology industry is tiny in Australia and our share market represents only 2% (approximately) of the world’s total share market value3, which means there are opportunities to invest overseas. But should you?
Before investing, it’s important to take into account the risks of currency movements and holding investments in foreign countries.
So if there are those risks, why bother?
A diversified investment portfolio aims to invest in a variety of different asset classes to ‘smooth out’ returns. It’s like having your eggs in a number of different investment baskets – cash, fixed interest, property, Australian shares and international shares. When one investment falls in value, another is likely to be performing well over the same period. Diversification is a key component of LGIAsuper’s COR investment philosophy.
We’ve got you covered
You don’t need to buy shares in companies like Facebook and Apple yourself to enjoy the benefit of investing in international shares.
That’s because all LGIAsuper’s ready-made investment options aim to have at least some money invested in international shares, ranging from 5.5% in the Defensive option right up to 44% in the Aggressive option (figures as of 30 June 2017).
Three of our largest international shareholdings? Apple, Alphabet (the company that owns Google) and Microsoft (as of 30 June 2017).
All investments contain some degree of risk but LGIAsuper offers a wide range of flexible options designed to generate consistent optimised returns.
The way your super is invested can make a huge difference to how much money you have in retirement. If you’d like to find out more about your investment options, call 1800 444 396 and chat to one of our friendly team today.
You can also use our Investment risk profiler to help you understand what type of investor you are.
By answering 8 simple questions, this online calculator can help you choose an investment strategy for your super. Get started.