Australian investor sentiment up in Q2

9 June 2016
| By Oksana Patron |
image
image
expand image

Cash remains king despite the continuing low interest rate environment, according to the latest data released by CoreData.

The Australian Investor Sentiment Index (ISI) has recovered in Q2 from -9.0 to -0.6, but still remained in negative territory, with cash popular despite the historic low rate environment, according to CoreData.

The quarterly Investor Sentiment Report said that the uptick in ISI was driven mostly by an increase in investment intention and improved market expectations.

Following the growth in ISI, the Investor Equities Sentiment Index improved considerably to -6.4 from -14.2 in Q1 while the Investor Property Index recorded only a slight improvement to -8.2 against -9.2 in Q1 and both remained in negative territory.

Head of CoreData WA, Kristen Turnbull, said despite the historically low interest rate environment, Australians were still heavily invested in cash, holding a record $976.7 billion in cash and deposits, which represented 22.7 per cent of all financial assets.

Also, the cash equivalents and the Australian shares were the two most popular investments among respondents who had invested new money this quarter, according to a report.

"Looking forward, cash is also the most common investment investors are likely to make (44.5 per cent), with Australian equities coming a distant second (22 per cent)," Turnbull said.

However, she added that while cash remained popular, only one quarter of investors were happy with the investment returns generated by their cash assets in the past 12 months.

"This suggests that while cash is the flavour of the moment, the growing dissatisfaction with cash returns could prompt some reallocation of cash holdings if sentiment continues to recover,"

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 2 weeks ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 day 11 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago