Chief investment officers (CIOs) demonstrated a rise in confidence in Australia’s investment outlook for 2013, according to the Financial Services Council (FSC) CIO Index for the December quarter.
The index shows a sentiment score of eight, up from five in September and minus two in June, but still well below the score of 20 recorded in December 2011.
“Action by the Reserve Bank and a general view that macro-economic conditions are improving, and will continue to improve in 2013, is giving CIOs greater confidence than in the June and September quarters,” FSC chief executive John Brogden said.
Continued uncertainty around the Euro debt crisis, the US fiscal debt and Australia’s fiscal contraction is adding to the political uncertainty of investors, keeping sentiment below 2011 levels.
The Index also showed that chief investment officers are most concerned about risk associated with the Euro crisis.
In terms of investment asset classes, domestic and international property, bonds and fixed income rallied the least confidence.
Fifty per cent of chief investment officers expect Australian equities to perform well. The remainder have a neutral view. The outlook for international equities is slightly more positive, with five per cent expecting the asset class to perform very well.
“The demand for equities is expected to become stronger as asset classes such as term deposits and cash begin to lose their appeal,” Mr Brogden said.
