Dampening demand for global markets
Demand for global investments fell for the first time since February this year as Australian investors revealed themselves to be less likely to invest overseas, according to the Certitude global investing index.
Whilst the level of concern about global markets remains low, the study revealed local investors anticipate that the Australian economy will record healthy growth in the next 12 months and remain confident the All Ordinaries will outperform global markets.
Despite a fall in its popularity this month, the research found that North America once again outstripped other regions and remained the most popular choice for Australian investors, which is perhaps a comment on the pace of economic recovery in the US, as well as uncertainty surrounding the effects of the tapering of quantitative easing.
Intention to invest Western Europe and Asia both gained ground, as investors begin to move on from concerns about the sovereign debt crisis and economic stagnation and are beginning to eye Western Europe with more interest, the study said.
"Results from the CGIII this month indicate that while Australian investors are not worried about global markets, the fact remains that a greater number of investors are looking to actively decrease their exposure to international shares than last month, which may indicate that they are cashing in and taking profits," Certitude Global Investments chief executive Craig Mowll said.
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.
