KUALA LUMPUR (Oct 2): Eastspring Investment Bhd's survey found that Malaysian investors are having more interest to invest abroad in the second half of 2015 (2H15).

At a press conference to release its Unit Trust Investor Behaviour Study, the asset management firm's chief sales and marketing officer Yap Siok Hoon said the finding is reasonable as the Malaysian equity was not performing well during the time when the survey was conducted.

"Our findings show that majority of investment continues to stay within Malaysia but some outflows to various markets like Japan and Asia Pacific are expected in the next six months, with home (Malaysia) allocation potentially dropping from 70% to 59% in 2H15," she said.

Nevertheless, Yap reiterated that the firm remains confident in the Malaysian market on a longer investment horizon, as a big part of investors' asset allocation (59%) would still remain domestically.

"When bad things happened, it is normal for the investors to opt for a safer investment, but that does not mean they are not confident in the domestic market, as big part of their assets will still be allocated in Malaysia," Yap added.

The survey was conducted from July 16 to July 31 this year, with a sample size of 401 respondents, aged between 25 to 55 years old, having an average monthly household income of RM8,838.

"The study shows that Malaysian unit trust investors are continuously searching for yield and increasingly looking at alternative options outside of Malaysia, such as Japan and Asia Pacific in the next six months," Yap said, adding that this is an important indicator for Eastspring in product offering.

In view of the current economic condition, where investors are having lower risk appetite, Yap said Eastspring would offer safer products, such as those that have overseas exposure and fixed income funds.

"There is a gradual shift from growth fund to income or balanced funds. Over the next six months, the survey found that respondents' asset allocation to growth fund fell to 26%, from 28% currently; while income funds see an increase to 38%, from 35%," she elaborated.

Essentially, the survey found that investors are increasingly risk averse, while expecting higher return from their investment, particularly in Malaysia.

Yap said some respondents expect a return of up to 24% when investing in Malaysian equities, while only willing to lose an average of 12% of their invested capital.