Legg Mason's recent global investment survey has provided a snapshot of investment approaches, Australia as an investment destination, and how we stack up in retirement costs. The survey seeks to understand attitudes of investors, surveying over 5,000 affluent investors across 19 key markets.
Key findings of the Legg Mason 2016 Global Investment Survey include:
- Compared to 2015, 84 per cent of Australian core investors aged 40 or over called themselves somewhat or very conservative, up from 77 per cent. The global average is 64 per cent.
- Asset class spread is cash (28 per cent), real estate (25 per cent), and domestic equities (22 per cent).
- Australians are becoming more conservative than other areas globally, and cash has overtaken real estate and domestic equities as the main asset class.
- Only two per cent of older Australians say they will be investing in international shares this year. The global average is 22 per cent.
- Australia is thought to be the second-most attractive investment opportunity for 2016.
- Returns are dropping - 1.6 per cent last year, compared with 3.2 per cent in 2013.
- Australian retirement is one of the most expensive globally, along with the USA and Hong Kong.
- The survey included those aged 18-39, with this age group favouring property - 36 per cent of their portfolios, on average, with the global average being 18 per cent. Older Australians had 25 per cent invested in property.
- Over 60 per cent of older Australians believe that real estate investments are the best investment opportunity, compared to a global average of 32 per cent.