Expats still confident about investing despite global slowdown

by Ray Clancy on October 11, 2012

Expats remain confident in equities as their preferred investment choice

Expat retail investors continue to show confidence in international markets despite general bad feeling about the global economy, a new survey shows.

More than half, 52%, of expat investors expect the global economy to fall back into recession in 2012, according to the TD Global Investor Confidence Survey, which spoke to over 2,000 expat and UK investors from around the world.

Despite this they remain confident in equities as their preferred investment choice for both income (44%) and growth (41%), above any other investment class.

When it comes to investing in international markets, TD’s survey shows a real shift of confidence regarding Europe. Only 5% of expat respondents are expecting Europe to be the best performing market in 2012.

While this illustrates a significant decline in confidence in the European markets, elsewhere confidence is more positive. In particular, Asia remains the most popular market among 46% of expat investors, followed by the USA at 18% and Australia at 8%.

‘Recent economic turmoil in Greece, Italy, Spain and Ireland will no doubt have placed a heavy burden on both expat and UK investors, demonstrating that now more than ever it is important they have the opportunity to seek out opportunities in international equity markets,’ said Annemarie Jung, chief executive officer of Internaxx Bank, a TD Company servicing international and expat investors.

While expats chose equities as their top investment choice for 2012, they also revealed a high level of interest for hard assets with a combined 39% saying they would choose to invest in real estate, commodities and precious metals in 2012, compared to 26% of their UK counterparts.

The survey also found that 20% of expats would invest in gold and precious metals, compared to 12% of UK respondents.

When asked where they kept their assets, over half, 58%, of expat investors said that they held some or all of their assets offshore, while 48% said they most commonly use the services of an execution-only broker to invest.

‘It is clear from our research that expats’ desire for financial stability and a balanced portfolio is leading them to choose a broad mix of asset classes, including international equities and hard assets such as property, commodities and precious metals,’ said Jung.

‘It is also clear that in terms of managing their wealth and accessing international markets, investors are more than happy to take control themselves with almost half of the expat respondents to our survey confirming they use the services of an execution-only broker,’ she added.

As a leading international online broker, Luxembourg based Internaxx helps individual investors manage their wealth when living and working abroad, and offers international investment opportunities.

Internaxx’s international and expatriate clients have access to international stock markets, multi-currency accounts and investment funds, 24 hours a day and seven days a week.

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