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Investor demand for global assets declines

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Net demand for global assets fell during February, with the Certitude Global Investing Intentions Index decreasing 15 per cent from the January high of 182 to 154 in February.

Despite this, however, the research shows Australian investors believe they need to increase their global diversification, with 39 per cent stating they want to increase the level of international investments in their portfolio. 

Global equities were the most popular asset class for those planning to increase their global exposure, with 81 per cent of these investors stating they are interested in making allocations to this asset class. 

USA remains the top region for investors looking to invest offshore, despite a slight decline in popularity. 

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This month 43 per cent of the investors planning to invest offshore are interested in North America, this was down from 52 per cent in January.  

Interest in Asia also declined slightly this month, falling 10 percentage points to 18 per cent. 

Investor appetite for international funds covering multiple regions remains strong, but with 28 per cent of investors interested in these funds. 

Certitude Global Investments chief executive Craig Mowll said it makes sense investors are interested in these multiple region funds when they are concerned about exchange rate and market volatility. 

He said having a professional who “can make regional allocation decisions rather than investing in a specific region directly” would be attractive for those investors lacking in knowledge. 

Another key finding from this month’s results is that investors with a financial adviser are more bullish in their intentions to invest offshore compared to those who are non-advised. 

"This may suggest that advised clients are making more long-term considered decisions rather than having ‘knee-jerk’ reactions to market movements,” said Mr Mowll.