Australian active investors showed the highest net demand for overseas assets in eight months in December 2014, with 44 per cent of active investors saying they need more international assets in their portfolio.
That is according to the Certitude Global Investing Intentions Index (CGIII), which also found that of those keen on investing overseas, 50 per cent want to do it within the next three months, the highest since the index started, and 9 percentage points up from November.
"This demonstrates that although investors' demand for offshore investments is increasing, they still are remaining cautious in their investment approach," CEO of Certitude Global Investment Craig Mowll said.
"Fifty-three per cent of investors said they were concerned about another global financial crisis or market crash, highlighting that people are conscious about where they spread their money geographically. This means developed markets tend to be an area of greater interest."
High net worth investors' interest in overseas assets reached its highest level since January 2014.
But confidence in the Australian economy went the other direction, plunging 17 percentage points in December 2014, with just 26 per cent of investors predicting the Australian market could record good growth in the next 12 months.
Mowll said the lack of confidence in the Australian market comes on the back of the China slowdown, apprehensions over the resource sector and Australian debt.
While equities remain the favourite avenue for gaining international exposure (81 per cent), more investors are going down the infrastructure route for overseas exposure (16 per cent, up 5 percentage points).
Six per cent of investors wanted to invest in hedge funds, up 2 percentage points.
The sovereign wealth fund grew $11.5 billion in the March quarter, according to its latest portfolio update, having previously voiced caution about inflation’s downward trajectory.
The property group, owned by industry super fund Aware Super, has announced two new projects with a total construction value of $320 million that will add more than 700 homes to Melbourne’s rental market.
While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their involvement in addressing the substantial capital requirements vary widely.
Despite a period of increased volatility, several considerations suggest that the bull market will remain intact and the trend in shares will remain up, an economist has suggested.
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