Investing in Australian-listed companies that have "substantial overseas businesses" may be the easiest way for investors to gain global exposure, says Hyperion's managing director.
Speaking to InvestorDaily, Hyperion managing director Tim Samway said a lot of Australian companies now have to look overseas because they have exhausted their domestic markets.
"We find the ones that are doing best are the ones that have a really good idea here, they're quality businesses, and they can take that idea here and roll it out in foreign jurisdictions," Mr Samway said.
Brambles and Cochlear are two examples of companies in Hyperion's portfolio that have "very substantial businesses overseas" and are small by comparison in Australia, he said.
"We think where a company is listed is incidental. We’ve got plenty of businesses in our portfolios that are true international businesses and just happen to be listed here.
"These are businesses that are taking very good businesses internationally and rolling them out with great success," he said.
Fluctuations in the Australian dollar in recent years have actually benefited some of these companies, Mr Samway said.
"Many of these companies expanded their businesses overseas while the Australian dollar was very strong against the US dollar.
"Now they're getting a tailwind from the falling Australian dollar so they’re bringing those dollars back into Australia at a better exchange rate," Mr Samway said.
Hyperion prefers not to "double manage" currency risk, he said.
"Short-term currency fluctuations are what a business' [management] is there to manage. We’d prefer not to try and double manage that.
"We think the owners of a business are better placed to manage the part currency risk that faces their businesses," he said.
New research has found the consequences that fees can have on an investment and how higher fees do not necessarily correlate with performanc...
A new fund based on a long-running strategy from asset manager Insight Investment has been added to the Macquarie Wrap platform. ...
The Australian ETF industry continued its strong growth trajectory, reaching a record high of $42.29 billion in FUM in September, according ...