Investors are rediscovering the importance of diversification to balance investment risks and take advantage of strong international growth opportunities.
After the onslaught of the Global Financial Crisis in 2007-2008, Australian investors turned their back on international assets and instead focused their attention on local investments. It wasn’t until late 2011/2012 that confidence levels started to lift. Since then, demand for foreign assets has been steadily increasing, further bolstered by growing concerns about a slowing Australian economy.
However, while there’s a clear and strong demand, and it’s almost certainly set to keep increasing, there are some key challenges to be overcome, including the complexity and time involved in accounting for foreign assets.
You can read further information on the trend towards diversification, including key industry stats, challenges and a proposed solution to accounting for foreign assets in the Class white paper “Automating Foreign Investment Transactions”.