Advised investors more confident investors
Advised investors are more bullish in investing offshore and hold more stable views towards global investment compared to non-advised investors.
That was the finding from February’s Certitude Global Investing Intentions Index (CGIII) Report by Investment Trends.
The report showed non-advised investors’ net demand for international assets plummeted from 187 in November to a current low of 131 in just three months. The figure for advised investors, however, remained steady at 167 in February.
“This month’s results highlight a trend we’ve seen that investors with a financial adviser have steadier intentions when it comes to investing overseas than non-advised investors,” CEO of Certitude Global Investments Craig Mowll said.
“This may suggest that advised clients are making more long-term considered decisions rather than having 'knee-jerk’ reactions to market movements.”
Investors cited exchange rate volatility as the main concern for investing offshore (23 per cent), while 21 per cent cited market volatility and 21 per cent cited lack of knowledge.
Mowll said investors feared loss of capital, uncertain markets and conflicting forecasts for market performance while investing.
“It is unsurprising then that adviser-led investors feel more positively about global investment opportunities than others and remain more stable in their intentions,” he said.
“They have the benefit of an adviser’s insight and experience of market cycles to manage volatile times.”
Overall net demand for global investments fell 15 per cent to 154 from a high in January. But a large proportion of Australian investors still understand the need to increase their global diversification, with 39 per cent saying they need more international investment in their portfolio.
Recommended for you
AUSIEX has announced it will acquire FIIG, a specialist fixed income provider with $4.5 billion in funds under advice.
Platinum Asset Management has announced it is in discussions with a global alternatives fund manager regarding a possible merger to create an $18 billion firm.
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
The alternative asset manager has expanded its Singapore office with a head of Asian distribution, representing a “critical step” for the Asian business, where it is seeking to launch new offerings.
