According to Legg Mason’s 2016 Global Investment Survey, investors aged over 40 have upped their investment portfolio’s cash allocations to 28 per cent, overtaking investment in real estate at 25 per cent and domestic equities at 22 per cent.
This follows reports that SMSF trustees in particular are shifting their focus to less-risky assets amid market volatility, with BetaShares research last month finding appetite for alternative asset classes such as gold is on the up.
“Gold is traditionally seen as a safe haven asset and the recent spike in investor interest demonstrates that a number of investors are turning to gold as a store of value as some globally significant central banks are pursuing a negative interest rate policy,” BetaShares managing director Alex Vynokur said at the time.
Legg Mason’s research also found international investors over 40 believe Australia to be the second-most attractive investment opportunity in 2016 after the US, beating Latin America, Asia, UK and the rest of Europe.
These same investors regard Australia and Singapore as having the lowest financial risks as an investment destination.
Conversely, the US is thought to carry greater risk, with 17 per cent of respondents picking the US to have one of the highest investment risks.
The research also found older Australians continue to be less likely to invest internationally compared to other nations, with only two per cent strongly agreeing that they will focus on international investments this year, compared to the global average of 22 per cent.