Investors seeking equity, says Schroders Global Investment Trends Report
The Schroders Global Investment Trends Report 2014 points to growing cross-border investments in risk assets such as equities, compared to the last such research a year ago.
Representing the views of more than 15,700 investors worldwide, who intend to invest €10,000 or more in the coming 12 months, the Investment Trends Report offers a snapshot view of investor intent in 23 countries around the world.
The findings suggests that 82% are looking to maintain or increase the amount they invest and save in 2014. Some 70% of those surveyed said they would be looking to invest in equities.
Schroders said the result suggested that the increased appetite for equities reflects a more positive long term economic outlook, despite recent marekt volatility.
Just 18% of the investors surveyed said they are looking for fixed income to meet their needs, while just 8% plan to stay in cash.
A big change noted against the last such survey, in 2013, is in regards to developed markets. Some 27% of investors expressed confidence in Western Europe, up from 10% last year, and 31% expect strong growth opportunities in the US.
Asia Pacific remains the region where investors expect the strongest growth, some 39% said this was their expectation.
Massimo Tosato, executive vice chairman, Schroders plc said: “This report shows encouraging signs of renewed confidence in equity markets, driven in part by improving economic and market performance in developed economies. The US economy delivered Q4 growth of around 3% despite the Federal government shut-down and havoc caused by poor weather. In Europe, Germany and the UK have performed well. Equally Japan has delivered some of the best results of any global economy following Abenomics policies, giving renewed hope to investors across the globe.”
However, he added: “Despite positive news from some countries, global GDP growth remains lower than expected, when compared to recovery rates from previous recessions. This growth will not be uniform across sectors, economies or regions, particularly given that significant weakness remains in some eurozone countries, and also in emerging markets where the withdrawal of QE is weighing heavily on stock markets. We are in a still transitioning global economy and taking an active investment approach remains key for investors.”.”
Still, investors have shifted their thinking in regards to foreign versus domestic equities. About two-fifths, 41%, of those surveyed said they are planning to buy domestic equities, with the rest looking more widely at other regions or other asset classes. Last year, they were more domestically focused.
Tosato said: “This year investors are taking a more global view as they seek to
capitalise on new growth opportunities. However, the shift away from domestic assets to ones outside of investors’ home markets means that many will be pushing the boundaries of their knowledge. Seeking professional financial advice should be a focus for investors as they look to move into new areas and benefit from global growth and opportunities.”