Investors’ interest in international equities increases despite market concerns.

9 October 2014
| By Priya |
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A Certitude Global Investing Intention Index (CGIII) has revealed active Australian investors are seeking to increase exposure to international markets but are wary of global market conditions.

The proportion of of surveyed investors interested in investing in equities for their overseas exposure increased by seven per cent pts to 85 per cent from last month.

Other asset classes remained mostly steady or declined marginally.

CGIII CEO Craig Mowll suggested the marked increase in demand for equities indicates investor trepidation toward global market trends and a desire to stick to the familiar.

"Equities have always been the number one choice for investors looking for international exposure, but the significant upswing this month may reflect a desire to stick with what they know in the light of some uncertainty in global markets."

CGIII's conclusions on investor confidence were supported by an increase in demand for actively managed international funds (44 per cent, up five percentage points from August) compared with direct purchase of shares, indicating investors are seeking for the knowledge of specialist fund managers, instead of making investment decisions independently.

The findings suggested that despite some concern that internations markets may not rise as antipated there was a growing appetitie for international exposure.

"When investors were asked about the intended timing of their next overseas investment, 37 per cent said that they would like to do so within the next three months, indicating a confidence that in the short-term at least, international markets are likely to offer good opportunities," said Mowll.

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