More Australian investors are prioritising capital preservation and generating a stable income stream as the average investor expects the All Ordinaries Index to rise 1.9% over the next 12 months, according to a report.
The latest Investment Trends report found more investors’ main goals would be to protect their assets and income from market falls (15%, up from 11% the previous year). Fewer were aiming to maximise capital growth at 21%, down from 26%.
The firm’s senior analyst, King Loong Choi said: “More investors are prioritising capital preservation and generating a stable income stream. To effectively achieve these priorities, many realise they need a diversified portfolio, which has led to the rising adoption of managed investment products.
“Across the range of managed investments, Australian investors currently allocate the largest proportion of their total portfolio to unlisted managed funds (7%, on average), while ASX-listed investments such as exchange traded funds and listed investment companies are gaining popularity (both 4%, up from 3% in 2018).”
Choi said Australians had gradually revised their outlook for domestic stocks downwards as global macroeconomic and geopolitical tensions continued to weigh heavily on investors to adopt a more defensive stand in asset allocation.
The report also found that three-in-10 investors considered environmental, social, and governance (ESG) factors when selecting or...