The index is produced by Investment Trends every month and is formulated from the views of over 800 actively engaged leading investors.
The January index results indicate that one in four Australian investors plan to increase their exposure to international shares within the next month – the highest proportion since September 2011.
North America was the most popular region for those looking to invest offshore, increasing by 8 percentage points in January.
Fifty-two per cent of investors listed North America as their preferred region in which to invest, with ‘international funds covering multiple regions’ remaining the second choice.
Certitude Global Investments believes Australian investors may be attuned to recent reports of US economic recovery resulting from consumer spending, increased capital spending and exports.
Asia, Western Europe and China also saw increases in popularity according to the index.
Certitude Global Investments chief executive Craig Mowll said the increased interest in Western Europe shows investors are feeling more confident about 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 nine per cent cite it as their main concern,” said Mr Mowll.
The optimistic sentiment towards international investment prospects was surprising, given the falling Australian dollar and a predicted slowdown to occur in Asia, he added.
“It is promising to see that Australian investors are looking beyond our shores and have recognised the excellent growth opportunities that come from diversifying overseas,” Mr Mowll said.
The report also shows investors are looking to allocate assets offshore sooner than in the past.
Nearly half (47 per cent) of investors planning to invest offshore, plan to do so within the next three months, a 41 per cent increase from last month.
The report also found investor concerns about market and exchange rate volatility have dropped, falling six per cent to their lowest point since May 2013.
Lack of knowledge, however, was listed as the greatest barrier to investing internationally, with 23 per cent of investors stating they don’t know enough about it.
