26 February 2014
Investors in Russia and around the globe are looking to equity markets for growth this year, according to a comprehensive new report of investor sentiment by Schroders. Analysis of the Schroders Global Investment Trends Report 20141, a survey of 15,749 investors across 23 countries, reveals that more than four-fifths (82%) of global investors are looking to maintain or increase the amount they invest and save in 2014, with 70% of investors2 looking to place new money in equities.
Following the global trend, of the 506 investors surveyed in Russia, over half (58%) are planning to increase the amount they invest and save this year with almost two-thirds (64%) planning to invest in equities.
As well as equities, gold is a very popular investment choice for investors in Russia, with almost a third (31%) looking to invest in the asset this year, despite the falls it suffered in 2013, and nearly a quarter (24%) favouring physical property to deliver the best returns in 2014.
As for other major asset classes, the report reveals that just 11% of Russian investors (18% of global investors) will be looking to fixed income and only 9% (8% of global investors) plan to retain money in cash.
This increased appetite for equities appears to reflect a more positive long-term economic outlook, despite recent market volatility. The report reveals that around the world investors are looking to invest in developed economies, as these are seen as offering more stable potential returns and the best growth opportunities.
Indeed, the report shows that global investor confidence in developed economies such as North America and Western Europe has spiked since the 2013 report, with 27% of investors looking to Western Europe (up from 10% in 2013) and 31% expecting North America to offer strong growth opportunities (compared to just 18% in 2013). However, Asia Pacific retains its crown as the region that global investors expect to drive the strongest overall growth in 2014, with 39% of investors favouring the region.
For Russian investors, their confidence lies in Eastern Europe (including Russia), with 45% citing the region as likely to deliver the best returns. Over a third (39%) say Asia will deliver growth, and around a fifth are looking to Western Europe and North America (23% and 20%, respectively).
Thierry Clarke, Head of Central and Emerging Europe Distribution at Schroders, said: “This report shows encouraging signs of renewed confidence in European equity markets, in particular Eastern Europe, by Russian investors, driven by the positive outlook for the European economy and attractively valued investment opportunities that are emerging. The fact that more than half of Russian investors are planning to increase the amount they invest also highlights this improved investor confidence and the strength of the economic recovery story. However, Russian investors still have a domestic market bias.”
The top financial priorities for investors across the globe in 2014 are to invest disposable income (48%) and to deposit money in a savings account (23%). This corresponds with the trend in Russia where nearly half (45%) plan to prioritise investing spare disposable income and three-in-ten (30%) say they will deposit it in a savings account. However, Russia bucks the global trend for the third main financial priority, where one-in-eight (13%) are prioritising investing in their own business, which compares to just one-in-twenty (5%) global investors combined.
A third of Russian investors (33%) believe Russian equities will deliver the best returns and so plan to invest in them this year. Globally, around two fifths (41%) of respondents are looking to buy equities in their own country, with the rest looking more widely at equities in other regions or other asset classes. Investors polled for the 2013 Schroders Global Investment Trends Report were more domestically focused, with half of respondents looking to invest in their own country as the driver for growth.
Thierry Clarke, Head of Central and Emerging Europe Distribution, concludes:
“This year investors are taking a more global view as they seek to capitalise on new growth opportunities. However, as some Russian investors look beyond their domestic market, 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.”
For more details about the report from 26th February visit our website: www.schroders.com/sgitr2014 and to join the conversation on Twitter, use the hashtag #SGITR2014.
Notes to Editors
For media only.To view the latest press releases from Schroders visit: http://ir.schroders.com/media
Schroders commissioned Research Plus Ltd to conduct an independent survey of 15,749 investors in 23 countries around the world (506 in Russia) who intend to invest €10,000 (or the equivalent) or more during the next 12 months. The survey was conducted online between 2nd – 24th January 2014 and these individuals represent the views of investors in each country involved in the survey.
This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. The opinions stated in this presentation include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realized.
Schroders is a global asset management company with £256.7 billion (EUR307.2billion/$415.8billion) under management as at 30 September 2013. 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 37 offices in 27 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 Conduct Authority. For regular updates by e-mail please register online atwww.schroders.com for our alerting service.
1Schroders commissioned Research Plus Ltd to conduct an independent survey of 15,749 investors in 23 countries around the world (506 in Russia) who intend to invest €10,000 (or the equivalent) or more during the next 12 months. The survey was conducted online between 2nd – 24th January 2014 and these individuals represent the views of investors in each country involved in the survey.
2For the purpose of this research project we have defined an ‘investor’ as someone with €10,000 or equivalent that they are looking to invest in the next 12 months.