International asset demand slumps
Demand for international assets took a beating in August 2014 by two per cent but high net worth (HNW) investors are bucking this trend, according to Certitude.
The Certitude Global Investing Intentions Index (CGIII) showed overall net demand for global investments continued to increase to a level roughly equal to a six month high among high net worth investor and advised investor groups.
"We know that HNW investors are significantly more likely to be taking expert advice, for example they are likely to be considering international managed funds covering multiple regions in their portfolio," Certitude CEO Craig Mowll said.
"Advised investors have maintained the same levels of net demand for global investment over the last four months while non-advised investors have become very nervous."
The CGIII also reported most global asset classes have dipped or remained steady, except for fixed income, which rose four percentage points to 10 per cent.
Demand for the defensive asset rose a 12 month high among investors looking for safer options.
There was a significant dip in confidence in Australian equities, the report showed.
"Results from the CGIII in August suggest that investors are cautious about most equity markets and the slight decline in appetite for international investments is symptomatic of this nervousness," Mowll showed.
He also said almost half of investors (49 per cent) fear another market crash like the global financial crisis. Geo-political events in the Middle East (41 per cent) and a slowdown in China (38 per cent) are also making investors nervous.
AUTHOR
Malavika Santhebennur
Recommended for you
Blackwattle Investment Partners has hired a management trio from First Sentier Investors – who departed amid the closure of four investment teams last year – to run its first equity income offering.
After passing $300 billion in funds under management, Betashares is forecasting the Australian ETF industry could reach $500 billion by the end of 2028.
Ausbil is to expand its active ETF range with two ASX-listed launches, one focusing on global small caps and one on listed infrastructure.
Up to 20 per cent of wealth and asset managers globally are set to be acquired in the next five years, according to Morgan Stanley, with focus expected to move to ‘inter-sector’ deals between industries.
