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Investor appetite for global assets growing

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Investor demand for overseas assets has risen during March, with the Certitude Global Investing Intentions Index (CGIII) increasing 15 per cent despite the fall in February.

The CGIII examines the views of over 500 actively engaged investors and measures their demand for global investments. 

According to the report for March, demand for international shares is likely to be driving the increase in intentions to invest globally. 

The proportion of investors with the intention to invest in international equities rose from 14 per cent in February to 16 per cent in March. 

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Investor interest in hedge funds also rose, with seven per cent of investors interested in this asset class. 

Equities remain the preferred asset class for those with the intention to invest offshore, with 81 per cent stating they are interested in equities. 

Intentions to allocate to Australian equities declined, however, from 29 per cent in February to 23 per cent in March. 

Certitude Global Investments chief executive Craig Mowll said the results show investors are “rethinking their geographic allocation to take advantage of international investment opportunities, shifting assets from domestic to international equities”. 

“This is a smart diversification move for many Australian investors who historically are overweight domestic equities, meaning their portfolios carry a lot more risk should our economy experience a downturn,” said Mr Mowll. 

Mr Mowll said the concern level of investors was only slightly above the low in January, despite many investors expressing concerns over China’s economic stability and the situation between Russia and Ukraine.

“The slightly lower fear level corresponds to the high demand we’re seeing for international shares,” he said. 

The report also showed market volatility was the most common barrier to investors investing overseas, at 24 per cent, followed by lack of knowledge at 22 per cent.