Investing solutions for the global investor: Event wrap-up
We’ve all heard how investment diversification is key to being a successful investor during volatile times. But how do investors actually go about increasing their exposure to international markets to achieve geographic diversification?
At the event, Sharesight CEO Doug Morris shared insights on the exposure of Sharesight’s Australian users to international markets, and the role Sharesight’s performance and tax reporting plays as part of the complete suite of tools needed by global investors.
Saxo Markets’ CEO Adam Smith spoke to the demand from clients for integrations with fintechs like Sharesight, and Saxo Markets’ Market Strategist Eleanor Creagh explored the global macroeconomic themes shaping markets in 2019.
The importance of geographic diversification for investors
Doug’s presentation centred on the need for investors to invest globally and contrasted the relatively high rates of international exposure among Australian Sharesight users to the average figures across all investors in Australia.
How global are the investments of Sharesight users?
Australian Sharesight users (on paid plans):
1 2 3 4 5 * Median annual return 12% * 74% Australian markets * 10% US markets
Saxo Markets - Overview
Adam spoke about Saxo Markets, their history and global presence, relating the problem that many self-directed investors have with the tax side of the equation, and his excitement to be able to offer a tool like Sharesight to help Saxo Markets’ clients solve that problem.
First digital access platform
Covers the full spectrum of clients (DIY/HNW/SMSF/traders/asset managers, etc)
35,000 tradable products
Ability to trade every asset class (if they don’t offer a particular investment, just ask)
Clients from over 170 countries
16 offices globally (headquartered in Copenhagen, Denmark)
SCMA (Saxo Capital Markets Australia) licenced by ASIC
An understanding of the macroeconomic outlook for global investors
Eleanor provided background on how Saxo Markets’ Strategy department operates. With teams based in each regional location, their highly nimble research house provides Saxo Markets’ clients with both local and global research and analysis.
2018 macroeconomic themes
2018 was a difficult year for investors, as most asset classes had low to negative returns by the year end – due to a range of factors:
Rising cost of money
Fed tightening cycle
Shrinking quantity of money
Shrinking US $ liquidity
Deglobalisation shock / trade wars
Geopolitical coordination tapering off
2019 macroeconomic themes
False stabilisation in markets
December 2018 sell-off shook investors
Federal Reserve’s sudden u-turn in the direction of rates
PMI peaked in Jan 2018 – which usually has a lagged impact on consumers
If historical PMI relationship holds up, consumer spending and sentiment to fall
Cyclical downturn exacerbated by trade war tensions
US$ rising – tightens financial conditions globally
Late in the cycle
Stay invested but manage late cycle risks
Volatility on the rise
Ageing consumer/digitisation thematics
Tail risk event chance is rising
Markets appear to be front running – stimulus expected to come later this year from central banks
The 70th anniversary of the founding of the People’s Republic of China is in October
Therefore trade escalation risk between US/China likely to be low before then
The impact of rates
Expecting more than a mid-cycle adjustment
Central banks to ease rates
Fed to cut in September… possibly also in October and December
Passive investing is no longer in vogue
Focus on capital preservation – low beta minimum volume
Gold long term might be a buying opportunity vs negative yield debt as a hedge against central bank quantitative easing
Fixed income an option in an environment where rates are moving down
US yields heading lower, US$ strength preventing reflation trade globally
Sharesight’s new Saxo Markets Integration
Concluding the event, Doug returned to the stage to unveil Sharesight’s new Saxo Markets Integration which allows Saxo Markets clients in Australia to easily sync their trading history to Sharesight simply by connecting their trading account through the integration.
Demonstrating how easy it is, Doug walked the audience through the process to import trades from a Saxo Markets account to a Sharesight portfolio, with the process taking less than 5 minutes before the trades were synced and he was able to run Sharesight’s CGT and taxable income reports on the portfolio.
Global investors love Sharesight
Sharesight was built for the needs of international investors like you, and makes it easy to keep track of your global portfolio. Here’s how:
Automatically track your daily price & currency fluctuations, and handle corporate actions such as share splits.
See upcoming dividend payments with the Future Income Report.
Get the full picture of your investment performance, including the impact of brokerage fees, dividends, and capital gains with Sharesight’s annualised performance calculation methodology.