The latest Certitude Global Investing Intentions Index (CGIII) Report found the index, based on Australian investors’ appetite for investing in overseas assets, with 100 a neutral score, slipped from 175 in August to 160 in September.
Investors weren’t put off by short-term events during the month of September when the survey was conducted, including the then-looming US government shutdown, Certitude stated.
The 750 personal, high net worth and SMSF investors who completed the online survey showed expectations of international markets rising in the next 12 months. Only 11 per cent expected global markets to fall in that period, down from 15 per cent in August.
Concern about investment markets dropped from 6.0 out of 10 in August to 5.8, indicating investors are less worried about global markets than at any time since the onset of the GFC, the report found.
Certitude Global Investments chief executive Craig Mowll said the result showed buyers of global assets continue to outweigh sellers.
“Australians are feeling a newfound confidence about the economy in general, reporting feeling more positive about opportunities at home as well as overseas. In fact, they expect the Australian stock market to rise by seven per cent over the next 12 months, up from six per cent the month before, while looking for gains in global markets of four per cent over the same period.”
The report also found 64 per cent of investors expect the domestic economy to record healthy growth in the next 12 months, up significantly from 36 per cent in August.
“Australians naturally favour their home market, but there is also plenty of willingness to take up global opportunities among those seeking broader horizons. It seems from these latest findings that long-term investors are looking beyond the short-term events such as the recent events in the United States and seeing them more as a buying opportunity than cause for concern,” Mr Mowll said.
“It’s also likely that confidence in global markets is being tempered by concerns about sovereign debt issues in Europe and geopolitical issues in the Middle East. Again, these issues don’t appear to be disturbing investors unduly – they seem to be seen more as opportunities to find value for those who know where to look.”
But investors are increasingly looking to outsource global investment decisions to experts, with 40 per cent planning to access global investments through actively managed funds, up from 31 per cent in August.
