70% tipping ASX to rise over next 12 months; Majority report improvement in portfolio since using Skaffold
Skaffold survey points to a positive 2014.
Australian investors believe the local market will rise over the next 12 months, according to a recent survey of more than 200 investors from stock research application house, Skaffold.
However, just one third see Australia as offering the best growth opportunities in the coming 12 months. Thirty three percent of respondents to the survey nominated Australia as the providing the best growth opportunities ahead of the US (30%) and Europe (16.0%). But when combining the total views on where the best growth will emerge, 67% nominated regions outside of Australia.
Skaffold CEO Chris Batchelor, said however, that the home bias of Australian investors remains. “70 percent of respondents are tipping the ASX to rise over the next twelve months, reflecting a bullish attitude to the local bourse. This is also mirrored by stock buying intentions, with the great majority (84%) planning to increase or maintain their current exposure to the ASX.
“Looking offshore, more than two thirds of respondents (69%) said they intended to maintain current exposures to offshore markets. More than one quarter (26%) said they would increase exposure and only five percent said they would decrease their offshore holdings.”
Mr Batchelor said investors who are using Skaffold are reporting stronger investment returns and that the findings had implications for investors and their advisers.
“The vast majority of respondents who currently use Skaffold say their portfolio has improved since they starting use our software. These investors have their superannuation heavily invested in shares and few are using an adviser or broker to help them with their stock decisions. But of those who do use and adviser, just 11 percent say they are dissatisfied with the service they receive.
“We think this shows a clear opportunity for advisers to engage with investors on stock selection decisions. The Skaffold platform is highly compatible with investors who use advisors, or, more accurately, we believe it adds to the investor/advisor relationship by providing another pillar to the relationship, one that is built on research and rigour.”
Of the respondents who currently use Skaffold, 84 percent reported an improvement in their investment portfolio since using Skaffold. 54 percent of respondents said they don’t use a financial adviser or full service broker, and more than 75 percent have between 50-100 percent of their portfolio invested in direct shares.
About the survey:
• All were participants in a Skaffold webinar conducted at the end of October 2013
• 51% were Skaffold members – 49% were not members of Skaffold
• 54% did not use the services of a financial advisor or full service broker
• 89% of those who did use an advisor or full service broker were ‘very satisfied’ or ‘adequately satisfied’ with the service provided.
• 84% of Skaffold members said their investment portfolio had improved since using Skaffold – 16% said it had not.