Irish investors go global in search for investments

Irish investors are going global in search of attractive investment opportunities and are showing a renewed confidence in the global economy, according to results of the RaboDirect Investor Barometer (RIB) released last week. The quarterly survey of Irish investors reveals that 70 per cent are optimistic about their personal finances and, while 84 per cent are pessimistic about the Irish economy, 58 per cent have a positive outlook for the global economy over the next 12 months. The barometer has been designed to assess investment sentiment and levels of confidence among Irish investors on a regular basis as the country struggles to cope with the recent market turmoil. Results this time around suggest green shoots in the wider global economy are encouraging investors to move away from the relative safety of cash and bonds, with 45 per cent of respondents looking to equities as their preferred asset class. This compares to a 17 per cent preference for bonds and 37 per cent for cash. The results also reveal that prospective investors tend to be more risk averse than active investors with 18 per cent leaning toward equities, 19 per cent toward bonds and 56 per cent toward cash. With economic indicators pointing to a more stabilised global economy by 2010, 77 per cent of investors surveyed believe there"s value to be found in the global stock markets. Over 72 per cent believe returns of 5-10 per cent are achievable from equities over the next 12 months with emerging markets attracting the greatest interest (36 per cent) followed by the US (23 per cent), Asia (21.5 per cent) and Europe (20 per cent). Not surprisingly, 85 per cent confirmed the ongoing negativity and low expectations around the Irish property market. 'The outlook for the global economy is showing signs of improvement, and we are seeing tentative signs of a return to stability followed by a return of investor confidence,' said Killian Nolan, investment manager at RaboDirect. 'Irish investors are now looking further afield for investment opportunities, particularly in emerging markets where they see longer-term investment opportunities to generate greater returns on their capital. On the ground, we"re seeing an increased interest in equity funds (up 64 per cent in last two months) with a focus on markets such as China, India and a move away from the more defensive sectors such as bonds and gold. 'The credit crisis has reinforced the need for investors to understand the fundamentals of their investment products and to have access to upfront, straightforward fund information. This is reflected in these results with over 34 per cent of investors and almost 50 per cent of prospective investors ranking honesty and transparency as the most important factors when choosing an investment provider. Costs and fees continue to be important with 39 per cent of investors paying attention to these factors when shopping around,' added Mr Nolan.