SMSF trustees keen to invest offshore

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Self-managed super fund investors are more eager than other investors to invest offshore, but still lack confidence and knowledge to do so.

The Certitude Global Investing Intentions Index – a monthly measure of Australian investors’ current appetite for investing overseas – showed 50% of SMSF investors intend to invest offshore over the next three months. Only 33% of non-SMSF investors intend to do so.

The chief executive Certitude Global Investments, Craig Mowll, said SMSF investors are often investment leaders.

“Last month we saw a strong uptick in Australian investors’ intentions to invest overseas and this month that intention was again signalled clearly, particularly from high net worth and SMSF investors.

 “These investors can often be leading indicators of the rest of the market in identifying and taking advantage of the vast world of investment opportunity that exists outside of Australia.”

But issues such as lack of knowledge, research or funds are becoming more significant barriers than market concerns.

The online survey of 707 people was done during November and showed:
  • Forty-three per cent of Australian investors say they need more international assets in their portfolio, an increase of 8% from last month.
  • This is in line with a corresponding decrease in the proportion expecting healthy growth in the Australian economy, 59%, down 6% from October.
  • While the US remains the region of most interest to those looking to allocate offshore, overall the gap between various regions is narrowing.
  • Market concerns are no longer the main barrier for investors looking overseas – 21% cite a lack of sufficient funds to invest with, 9% don’t have enough knowledge and 7% cite lack of research.