26 February 2014
UK investors are increasingly confident about the opportunities for the year ahead, 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 almost two thirds (64%) of UK investors are more confident about investment opportunities this year compared to less than half (41%) last year. As a result, more than nine-in-ten (91%) UK investors are looking to maintain or increase the amount they invest and save in 2014.
Over two-fifths (44%) of UK investors2 polled are planning to invest any disposable income, whilst 17% will deposit it in a savings account. However, only one-in-ten (9%) will pay off debts. Surprisingly, a quarter (25%) intend to spend it on a luxury purchase – possibly explaining why the UK is experiencing a consumer-led recovery.
When it comes to which asset class investors are looking at, 67% of those surveyed said they would be looking to invest in equities, with the most popular being UK equities (43%).
The British love affair with property appears set to continue with 13% favouring bricks and mortar and 10% looking at property funds this year. The report also shows that just 11% of UK investors will be looking to invest in bonds.
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 perceived as offering more stable potential returns and the best growth opportunities.
These trends are mirrored globally with more than four-fifths (82%) of investors worldwide looking to maintain or increase the amount they invest and save this year, and 70% looking to invest in equities. Indeed, investor confidence in developed economies is strong, with a particular spike in interest for Western Europe, with 40% of UK investors looking to this region in 2014 (up from 5% in 2013). Furthermore, almost a quarter (24%) are expecting North America to offer strong growth opportunities.
Asia retains its crown as the region that UK investors expect to drive the strongest overall growth in 2014, with 58% favouring the region. However, this expectation is not translated into action, and despite believing that Asia will deliver the best returns, just 13% of UK investors polled are planning to invest in Asian (including Japan) equities this year.
Robin Stoakley, Head of UK Intermediary at Schroders stated: “There are real signs of investor confidence emerging in the UK and it appears that people are taking a more global view as they seek to capitalise on the improving economic environment. However, as investor confidence improves they should seek professional guidance in order to ensure they have a well balanced mix of investments.
Encouragingly, our report shows that once investors have paid monthly bills, a key priority is to invest with the majority of investors choosing to do so for their retirement. Indeed, almost two-thirds of the investors polled stated retirement as their main reason for saving. We welcome this as in the future Britons will have to become more independent in their retirement”
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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 active investors in 23 countries around the world who have €10,000 (or the equivalent) or more of investible assets that they are looking to invest 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.
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1 Schroders commissioned Research Plus Ltd to conduct an independent survey of 15,749 active investors in 23 countries around the world (1,002 in the UK) who have €10,000 (or the equivalent) or more of investible asset that they intend to invest 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.
2 For the purpose of this research project we have defined an ‘investor’ as someone with €10,000 + or equivalent investible assets that they are looking to invest in the next 12 months.