The Certitude Global Investing Index for the end of June 2014 surveyed 500 actively engaged Australian investors and found net demand for global investments increased by 11 per cent, from 157 to 175, in the 12 months to the end of June.
The index showed that concern levels about global markets are at their lowest in the history of the index, falling from 6.4 out of 10 at the end of June last year to 5.6 out of 10 this year.
According to the index results, North America remains the most favoured market for overseas investment, with 46 per cent of investors who intend to invest overseas stating they would choose the US.
Certitude Global said this was down slightly from the 50 per cent figure for the same time last year, which could indicate that investor concerns about other markets have dropped during the same period.
The proportion of investors planning to invest in Australia over the year fell by 4 per cent to 34 per cent.
The index also showed that for the investors looking to invest offshore, the preferred method of investment was the direct purchase of shares (at 38 per cent) followed closely by investment in actively managed funds (at 36 per cent).
Certitude Global Investment chief executive Craig Mowll said the results show Australian investors remain positive about global markets generally.
“Even though monthly figures were volatile throughout the year, with the percentage of those intending to increase exposure to international shares reaching a high of 25 per cent and a low of 16 per cent, the bottom line is that the intention to invest was up on an annual basis,” said Mr Mowll.
“Clearly investors are continuing to feel more at ease with international markets, and understand that an exposure to international markets is necessary in a balanced portfolio.”
Mr Mowll said China and the Middle East are now the major areas of concern internationally.
“A number cited the economic slowdown and potential debt crisis in China worrying, particularly if this was to cause a sell-off in risk assets in Australia,” said Mr Mowll.
“In the same way, ongoing conflict in the Middle East is sparking debate about volatility in oil prices and potential flow-on effects.”
