Financial advisers warm to global equities: Zurich survey
More than two-thirds of Australian financial advisers are looking to increase their clients' allocation to international equities in the next six to twelve months, with three quarters of those to do so using managed funds, according to a Zurich Investments survey.
The majority of the 100 advisers surveyed are expecting positive returns from international shares over the next 12 months, with 54 per cent expecting single digit returns and just three per cent predicting international shares would deliver negative returns, the survey found.
Zurich Investments senior investment strategist Patrick Noble said the strong Australian dollar is likely increasing the appeal of international markets, while the familiarity of big overseas brands like Google and eBay may also be contributing.
"With the huge number of Australians facing retirement in the next few years, advisers need to find strategies that do not rely solely upon cash rates or a rise in local markets to provide income for the future. Importantly, they need to do this at a time when investor confidence remains subdued," he said.
Noble said managers can implement strategies to achieve income based on international shares rather than just relying on Australian share dividends, pointing to Zurich's own Global Equity Income Fund.
"Advisers know that staying in cash over the long run is not going to deliver the returns or income investors need for a comfortable retirement," he said.
Recommended for you
The “experiment” away from vertical integration has been a mistake, according to Clime’s Michael Baragwanath, and Clime is positioning to benefit via advice and fund manager acquisitions.
JP Morgan Asset Management has identified Australia as an “emerging growth market” as it seeks to double its assets under management in the Asia-Pacific region in the next five years.
Australian Ethical funds under management were $14.3 billion at the end of September, with its investment division seeing inflows return after outflows in the previous quarter.
Record flows into iShares ETFs helped BlackRock’s assets under management reach US$13.5 trillion in the third quarter, but it reported outflows from the APAC region.
