Using the JSE for international investing - What about investing in Apple? –

I’m an Apple fan; it's hard not to be – yip, I love my iPhone, my iPad and my iPod. But can you profit from your passion for Apple products, or maybe even Facebook? The short answer is YES you can. However, there is more to it than just buying shares in c

Nico-Louis Minnie, an investment specialist at Liberty, notes that, "Foreign equity markets react differently to global events so this is a form of diversification. In other words it is not only about buying those international shares because we like them, but also about managing risk and not putting all your eggs in one basket.

As an investor from within South Africa, we can obtain shares in international companies from buying stocks in companies that operate globally. Minnie reminds us that, “There are some companies that are listed in other countries and who derive some of their profits from overseas activities. Investing in these companies gives you exposure to foreign markets whilst investing on the local stock exchange." Of the local JSE listed companies, 79 are actually international dual listed and buying them on the JSE gives you greater exposure to foreign markets. So while my holidays may be in Parys rather than Paris, my profits can be from Paris, London, New York and many more.

Of course we can use unit trusts for international exposure and as Minnie suggests, "They provide the investor exposure to a range of asset classes depending on the portfolio. Information about the portfolios is available on the asset manager’s website on the fund fact sheets. Unit trusts can provide local or international exposure. They are especially useful to smaller investors that don’t have large sums to invest in specific shares.

South Africa may be one of the greatest countries to live in, but we have to consider the wider world when investing and the unit trusts of large JSE listed companies with international profits are a perfect way to spread our investment wings.