Active retail investors looking offshore for growth opportunities

4 April 2013; A survey by equity research company Skaffold has found active share investors believe offshore markets, particularly the US, will outperform the ASX over the coming 12 months.  And while more than half definitely want to increase their investment into international stocks, an inability to research individual stocks and a lack of knowledge about other markets is holding them back.

Launched by a group of stock selection specialists including Roger Montgomery, Russell Muldoon and Chris Batchelor, Skaffold is a time-saving online stock research application. Since 2011 the application has covered every ASX listed stock, but has now been expanded to include another 2000 companies listed on nine of the major global exchanges. 

Skaffold General Manager, Chris Batchelor, said demand for access to quality research on global shares was on the increase.  But that stock research needed to be cost-effective and easy to use if it was to serve its purpose.

“When designing Skaffold, we wanted to ensure it was easy to use for investors of every level, that’s why we have built it with gaming design and technology in mind.    Since our launch last year, we have witnessed strong demand from investors who are making stock selection decisions for themselves or their clients.  This includes SMSF investors, financial advisers, private as well as institutional investors,” he said.  

“The investors we have talked with recently believe that international markets will present the best investment opportunity in the coming 12 months, so we believe our new Global product will see strong uptake levels. ”  

Skaffold asked more than 100 active investors of their views and intentions with international investment markets.   

The survey found that 50.4% are looking to increase their investments in international shares. 43.4% were undecided, signaling that this figure could rise.  

The research also found that 45.6% believe global markets will offer the best growth opportunities over the next 12 months, compared to just 9% who believe that the ASX will outperform. And over two thirds – or 68.1% – believe the US market will offer the best international opportunity.

In terms of the most attractive features of international markets, 63.2% rated ‘All of the above’ naming access to; a great range of stocks (18.9%), the US (8.5%), other asset classes including technology (5.7%) and emerging markets (3.8%), as the key attractors of offshore markets.

In terms of their hesitations, the most commonly cited reason was the inability to access research on individual stocks (20.9%). Other factors included lack of knowledge, currency risk and the absence of franking credits.

“With Skaffold Global, active investors can now access key financial data and forecast information on global giants Apple, Google, General Electric, Chevron, Procter & Gamble, Singapore Airlines and even Facebook if they so wish.”

“We think also that the well documented growth of self-managed super funds (SMSF), will increase demand for access to an affordable, easy to use tools to help investors identify stocks that fit their investment profile.”

More than 50% of those surveyed already hold global stocks either as direct equities (25%) or via a managed fund (28.7%).  Almost 45% of those with exposure hold the equities in their SMSF and 31% hold the shares in their personal name.

The nine global exchanges available in Skaffold Global are: New York Stock Exchange (NYSE); NASDAQ Stock Market (NASDAQ); Hong Kong Stock Exchange (HKEx); Toronto Stock Exchange (TSX); Singapore Stock Exchange (SIN); London Stock Exchange (LSE); Swiss Exchange (SIX); European NYSE Euronext (EUR) and Deutsche Bourse.

Media contact:

Christine Toll

Financial Media Connections

Mob 0414 621163

Email christine@finmc.com.au

About Skaffold

Skaffold was launched in November 2011. The founders include fund manager Roger Montgomery, portfolio manager Russell Muldoon, general manager Chris Batchelor CFA and marketer Vanessa Gilbert. While searching for a way to solve a common investing problem, they began to explore ways to revolutionise investment research and save time. Their aim was to create a unique application that could be used and understood by everybody. 

Taking their ideas to a leading European digital design agency, Skaffold was developed with gaming design and technology in mind. Skaffold is now taking those ideas further right here in Sydney with a development team who work on delivering the latest ideas to all our members. 

On 1 December 2012 Skaffold Global was released, expanding investment opportunities to the world’s largest and most popular stocks. 

Skaffold is literally named after the construction term scaffolding, representing the support investors seek in constructing a solid share portfolio. The Skaffold Team is based in Pyrmont, Sydney Australia.