Investors favour overseas assets over domestic

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."

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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.