Global diversification is important for shareholders. Most investors are already 'all-in' on Australia, with their job, superannuation, house, and so on.
Fortunately, buying shares with international businesses can be done with ease from the comfort of the ASX:
CBL CORP FPO NZX (ASX: CBL)
Although this specialty insurer operates in both New Zealand and Australia, more than 3/4s of its business is in Europe, predominantly France. CBL is expanding into other regions including emerging markets, which reduces its reliance on any one economy, and has a very strong balance sheet with plenty of cash. A gradual expansion into the USA could also be on the cards, with this country being an important prospective growth market.
Sonic Healthcare Limited (ASX: SHL)
This globally diversified pathology business has operations around the world and earns more than half of its earnings outside Australia. Although the pathology business experiences low organic growth, Sonic management have a good track record of growing by acquisition. Sonic also naturally hedges some of its business by holding debt in local currencies where possible, which can help ameliorate changes in the value of the Australian dollar.
QBE Insurance Group Ltd (ASX: QBE)
QBE's operations are split mostly evenly with about 30% of Gross Written Premium earned in Europe, the USA, and Australia, and the remaining ~10% coming from emerging markets. While the insurer's past performance has been ordinary, there are some signs that business is improving and the company also stands to benefit from rising interest rates. A little expensive, but thanks to its diversification QBE could be worth holding for the long term.
Speedcast International Ltd (ASX:SDA)
Speedcast is a small-cap satellite internet provider with a presence in many regions across the globe, including isolated nations like Afghanistan and Kiribati. Speedcast provides internet to remote locations like oil wells and ships in transit and appears to grow primarily by acquisition. The company has just completed a major acquisition that will approximately double the size of the business, so prospective buyers may wish to wait a while to see how that acquisition performs.
Magellan Global Equities Fund (Managed Fund) (ASX: MGE)
Magellan Global Equities is a relatively new global fund managed by Hamish Douglass. It charges a 1.35% annual management fee as well as a modest fee for outperformance, and units are currently priced fairly. This is an easy option as investors don't have to apply to enter the fund – they can just buy the units on the market like ordinary shares. Magellan is a respected name in investing and this fund could be an attractive way to gain international exposure with a skilled fund manager.
