Investors’ interest in equities with international exposure increases.
Certitude Global Investing Intention Index (CGIII) reveals active Australian investors are looking to increase exposure to international markets but are wary of global market conditions.
The proportion of of surveyed investors interested in investing in equities for their overseas exposure increased by seven per cent pts to 85 per cent from last month.
While other asset classes remained more or less steady or declined marginally.
CGIII CEO Craig Mowll suggested the marked increase in demand for equities indicates investor trepidation toward global market trends and a desire to stick to familiar.
"Equities have always been the number one choice for investors looking for international exposure, but the significant upswing this month may reflect a desire to stick with what they know in the light of some uncertainty in global markets."
CGIII's conclusions on investor confidence were supported by an increase in demand for actively managed international funds (44 per cent, up five percentage points from August) compared with direct purchase of shares, indicating investors are seeking for the knowledge of specialist fund managers, instead of making investment decisions independently.
The findings suggested that despite some concern that internations markets may not rise as antipated there was a growing appetitie for international exposure.
"When investors were asked about the intended timing of their next overseas investment, 37 per cent said that they would like to do so within the next three months, indicating a confidence that in the short-term at least, international markets are likely to offer good opportunities," said Mowll.
AUTHOR
Priya Prakash
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
