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Advisers seize global investment opportunity

With continued pressure on the Australian dollar, BlackRock Australia has identified growing opportunities and demand for international asset allocation by financial advisers.

In a statement issued yesterday, BlackRock said that the ETF boom was creating opportunities for financial advisers to more easily provide international exposure in their clients’ portfolios.

“Asset allocation is driving the investment landscape for advisers and sophisticated investors,” the statement said. “Rather than debating which Aussie bank to own, the focus is moving to which countries should I be invested in and in what asset classes.

“Investors who work with their advisers to diversify their international portfolios to specific countries and regions, including the United States, Europe, China, and Japan, could take full advantage of the global opportunities.”

iShares ETF specialist John Howie said US-based equities funds that have been good performers in 2013 presented a particular opportunity, with ETFs facilitating exposure.

“ETFs have experienced significant growth in Australia, with Australian Securities Exchange ETF assets sitting around $9.51bn. This equates to an annual growth rate of over 60 per cent in the past 12 months. Total industry inflows this year have been around $1.99bn, the largest annual inflow level ever,” Mr Howie said.

BlackRock Australia spokesperson David Redford-Bell recently spoke to ifa about the opportunities in global investing relevant to advisers: http://www.ifa.com.au/video/insight/item/119-insight-david-redford-bell