Australian investors' overseas peak

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The demand for international assets reached a six month peak in January, according to Certitude Global Investing Intentions Index, released yesterday.
The index, produced each month by researcher Investment Trends to track net demands for global investments by surveying 800 actively engaged leading investors, rose to 182 points in January.
This month’s results indicate that global investments, particularly shares, hold a strong appeal for local investors this year.
One in four Australian investors plan to increase their exposure to international shares within the next month, the highest proportion seen since September 2011.
Certitude Global Investments CEO Craig Mowll said with a falling Australian dollar and a predicted slowdown in Asia, this isquite remarkable”.
“It is promising to see that Australian investors are looking beyond our shores and have recognized the excellent growth opportunities that come from diversifying overseas…Moreover, investors are planning to make these investments sooner than ever before.”
Nearly half (47%) of those intending to allocate investments offshore, plan to do so within the next three months – up from 41% last month.
North America – the number one choice for those looking to invest offshore – increased in popularity by 8% in January.
Australian investors may have seen recent reports of a pickup of the US economy, due to reasons such as an increase in consumer spending, rebounding capital spending and exports.
Rounding out the top five most popular regions are ‘international funds covering multiple regions’, Asia, Western Europe and China, all of which saw rising interest from investors in January.
Despite debate around China, it remains firmly on the radar of Australian investors, Mowll said.
“It is also interesting to note that interest in Western Europe is at its highest point since the report began. Investors evidently feel more confident in developed markets than in the past.
“Correspondingly concerns over sovereign debt problems in Europe have significantly decreased – where once this was the number one barrier for investors looking offshore, this month only 9% cite it as their main concern.”
But Australian investors continue to lack sufficient knowledge in international investing, with 23% saying they do not know enough about it.
“We recognise that many Australian investors need to feel more informed before making the decision to invest offshore,” Mowll said.

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