News releases

Schroders survey reveals concerns over inflationary pressure

At a recent Schroders Investment Conference in London, over 125 intermediary clients attended from more than 30 countries in Europe, the Middle East and Latin America. They were surveyed on their outlook for several asset classes, as well as their views on central bank activity and whether they believed this could lead to an inflationary environment. 

14/02/2013

At a recent Schroders Investment Conference in London, over 125 intermediary clients attended from more than 30 countries in Europe, the Middle East and Latin America. They were surveyed on their outlook for several asset classes, as well as their views on Central Bank activity and whether they believed this could lead to an inflationary environment.

The results revealed that the three quarters (75 per cent) of those surveyed believe that central bank activity will lead banks to start lending again and boost growth globally. However the majority (76 per cent) are concerned that this could lead to inflation rising to over four per cent a year within the next five years, with only 13 per cent confident that their portfolios are sufficiently safeguarded against the possible risk of inflation.

In this potentially inflationary environment there is a clear consensus (89 per cent) that global equities are expected to deliver higher levels of returns between now and the end of 2013, with 68 per cent of those surveyed saying they are currently overweight in this area. Within global equities, there is a clear interest in European equities, with 58% of those surveyed stating that they expected this to be the best performing asset class in 2013. This reaffirms results from the survey conducted at the same conference in October last year, where 41 per cent of those surveyed intended to increase their clients’ asset allocation to European equities by the end of the year.

Peter Beckett, Head of International Marketing, said:

“This survey has highlighted a clear change in investor attitudes towards global and European equities, as predicted by the results from our survey at the end of last year. The increasing sense of stability within the Eurozone, along with a firm belief that central bank activity will take hold and encourage banks to start lending again, has led to increased confidence in equity markets at the start of 2013. However, there is noticeable concern among investors that inflation could increase meaningfully over the short to medium-term period and we would expect to see increasing client demand for assets, such as equities, which are able to perform well in this environment.”

For further information, please contact:

Beth Saint, International PR Tel: +44 (0)20 7658 6168/ elizabeth.saint@schroders.com

Kat Sutton, International PR Tel : +44 (0)20 7658 5765/ kathryn.sutton@schroders.com

Charlotte Banks, UK Intermediary PR Tel : +44 (0)20 7658 2589/ charlotte.banks@schroders.com

Notes to Editors

Survey completed by 125 Intermediary clients at Schroders Investment Conference on 7th-8th February 2013. The results of the survey are opinion only and there is no guarantee that the markets will perform in the way anticipated.

Schroders is a global asset management company with £202.8 billion (€254.5 billion, $327.4 billion) under management as at 30 September 2012. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.

With one of the largest networks of offices of any dedicated asset management company, we operate from 33 offices in 26 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.

Further information about Schroders can be found at www.schroders.com.

Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Services Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service