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SMSFs ‘eager’ to look offshore

news
By sreporter
December 12 2013
1 minute read

SMSF investors are seeking increased exposure to international markets despite lacking knowledge of offshore asset allocation.

These investors are “more eager” to invest offshore than non-SMSF investors, with 50 per cent planning to do so within three months compared to 33 per cent of non-SMSF investors, according to the Certitude Global Investing Intentions Index (CGIII).

“Last month we saw a strong uptick in Australian investors’ intentions to invest overseas and this month that intention was again signalled clearly, particularly from [high net worth] and SMSF investors,” said Craig Mowll, chief executive of Certitude Global Investments.

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“These investors can often be leading indicators of the rest of the market in identifying and taking advantage of the vast world of investment opportunity that exists outside of Australia.”

In terms of barriers to investing overseas, 21 per cent of investors named insufficient funds as a central hurdle.

However, 9 per cent of investors say they don’t know enough about international investing and 7 per cent said lack of research deterred them from allocating overseas.

"This month, the stated barriers to international investing as well as the apparent indecision on where to allocate indicate that Australian investors feel insufficiently equipped to make informed decisions about which region or asset class they should invest in,” Mr Mowll said.

“This is something that global fund managers could be aware of when targeting Australian investors,” he added.