Investor sentiment – the first signs of a shift
Investor sentiment continues to play a large role in the performance of the Australian equity market. Colonial First State and the University of Western Australia Business School presents the second edition of the Equity Preference Index, with notable signs of a change in sentiment.
About the Equity Preference Index
The Equity Preference Index is a proprietary measure of investor sentiment, calculated using Colonial First State’s fund flow data for non-advised investors. It looks at investors’ overall moves in and out of equity-based managed funds and switches between asset classes. The focus on non-advised clients allows the clearest exposure to discretionary decisions by investors based on their view of the market and how confident they feel about future returns.
What does it tell us?
While it’s still too early to suggest sentiment has improved across the board, we have seen positive signs for under 35 year olds and 50 to 59 year olds. Of concern are females and investors aged between 35 and 49, who remain most at risk of not meeting retirement objectives.
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State). Colonial First State is a subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 ('the Bank'). The Bank and its subsidiaries do not guarantee the performance of Colonial First State's products or the repayment of capital by Colonial First State. This is general information only does not take into account individual objectives, financial situation or needs.
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