Appetite for global heats up
Investors have honed in on overseas assets as expectations of global markets performance starts to tick up.
According to the Certitude Global Investing Intentions Index (CGIII), which tracks the net demand for global assets, appetite increased 8 per cent overall and 9 per cent for high net worths.
Many investors sought higher allocations to international assets, an increase of five per cent to 43 per cent this month which reflected global markets performance expectations — 74 per cent believe global markets will rise in 12 months compared to 68 per cent last month.
Equities are king when it comes to allocations with 69 per cent favouring the asset class although demand for property also saw a slight resurgence following a decline last month.
Although volatility receded as the main barrier to investing internationally, threshold issues such as lack of funds (15 per cent) and lack of information (12 per cent) increased in July. Despite this, investors are bringing their timing forward with 32 per cent planning to invest globally within the next three months compared to 27 per cent last month.
"Investors are understandably reacting to significant data out of the major international economies - concerns about the currency saw the US lose some favour this month, and demand for emerging markets also dipped below the levels recorded last month," Certitude chief executive, Craig Mowll said.
Investors found favour with multi-region global assets -now the second sought after international exposure behind the US - as appetite for single region investments declined.
The CGIII, produced by Investment Trends, surveyed 800 investors including high net worths, self-managed super funds and higher income investors.
Recommended for you
Lazard Asset Management has announced the launch of a new global equity fund, expanding its qualitative offering for Australian investors.
After introducing its first active ETF to the Australian market earlier this year, BlackRock is now preparing to launch its first actively managed, income-focused ETF by the end of November.
Milford Australia has welcomed two new funds to market, driven by advisers’ need for more liquid, transparent credit solutions that meet their strong appetite for fixed income solutions.
Perennial Partners has entered into a binding agreement to take a 50 per cent stake in Balmoral Investors and appoint it as the manager of Perennial's microcap strategy.
