The Investment Trends August 2013 Adviser Product and Marketing Needs Report has found a growing trend away from cash towards growth assets, especially international equities.
“Our research confirms improved investor confidence and low interest rates have prompted planners to cut allocations to cash and direct more capital towards listed investments and other growth assets,” said Investment Trends senior analyst Recep Peker. “Now an increasing proportion of that money is being invested offshore.”
Allocation of new client investments to international assets jumped five percentage points between 2012 and 2013, the survey found.
Investment in the United States has been particularly popular as the “North American economic recovery gains pace”, the survey found, with 40 per cent of planners nominating the United States or North America as an attractive investment region – up from just 10 per cent in 2009.
“The last few months have seen a shift in global economic performance as the developed economies continue to recover while the pace of growth in emerging markets slows,” Mr Peker said.
“That’s encouraged a renewed investor focus on developed markets in general, and the United States in particular.”
However, the lack of franking credits from overseas investments continues to be a hindrance to some financial planners investing globally, the report said.
