Investors looking offshore and likely to move soon
Interest in international markets has continued to rise with many investors determined to shift into those sectors in the next three months according to research conducted for Certitude Global Investments.
In its most recent Certitude Global Investment Intentions Index (CGIII) survey the group found that 44 per cent of the 560 active investors surveyed indicated they needed more international assets in their portfolios, an increase of three per cent since the last survey and the highest response in the survey's history.
More than half of investors indicated they would consider the US/North American market when investing overseas with 38 per cent of investors indicating they would access international investments via funds covering multiple regions.
Around half of investors (46 per cent) indicated they were likely to make investments in these regions in the next three months Certitude Global Investment chief executive, Craig Mowll, stating "it appears that investors may be looking to re-orient from riskier options, and focus on developed markets."
The interest in international assets was reflected in sentiment towards the Australian economy with only 32 per cent of investors stated they believed Australia's economy will record healthy growth in the next 12 months.
"It is not surprising to see demand for overseas assets at its second highest level since inception of the CGIII. Clearly investors remain fundamentally concerned about the strength of the Australian economy and are looking to cast their net further afield," Mowll said.
"And it seems that the RBA agrees. The recent decision to cut official interest rates would appear to indicate that investors aren't the only ones concerned about the strength of our economy."
"At the same time, it was clear from this month's responses that investors are not ignoring the issues at home. A third of investors said that their biggest concern is Australia's debt level, 30 per cent were most concerned about commodity prices and 25 per cent about the exchange rate and value of the Aussie dollar."
AUTHOR
Jason Spits
Recommended for you
Global X analysis has revealed the Australian ETF market has grown by more than a third in the past year, driven by net inflows, which are almost double the pace of 2024.
Shareholders at Platinum Asset Management have voted on the decision to merge the firm with L1 Capital, creating a $16.5 billion combined fund manager.
Investment manager Woodbridge Capital has appointed Ben Evans as executive director, origination, joining the firm from Metrics Credit Partners.
Revolution Asset Management has listed its Private Credit Income Trust on the ASX today, offering retail access to Australian and New Zealand private credit.
