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
New research has revealed which fund manager is the most recommended by financial advisers to their clients, as well as the most preferred research houses.
The departure of BlackRock’s head of global client business Mark Wiedman after his 21-year tenure has prompted a reshuffle, with several senior executives receiving promotions.
The volume that financial advisers have invested in private credit funds could be among disclosures that providers have to make to ASIC amid a regulatory crackdown on private markets.
Platinum Asset Management has appointed Northern Trust to provide asset servicing solutions for their $11 billion Australian funds.
