InvestmentsMay 30 2013

Investor confidence rising, survey shows

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Fresh research shows investor confidence is starting to return, with the trend to move from bonds into equities predicted to grow.

The Schroders Global Investment Trends Report found 37 per cent of the 14,800 investors polled are planning to increase the amount they invest in the next 12 months, an average 4 per cent more compared to last year.

It also showed 41 per cent are more confident about investment opportunities this year, more than half of whom (56 per cent) say they think equities now offer the greatest growth potential.

The survey revealed an overall trend in favour of equities, while just 16 per cent of respondents said they were looking to invest in fixed income in the next 12 months.

However, the group points out a “fundamental disconnect” between the assets that investors believe will deliver the greatest growth in the next 12 months and where they are actually looking to place money.

Those polled said they intend to place half of their new and re-invested funds in 2013 into low-risk, low-return assets, with just 12 per cent of funds allocated to higher risk and higher return investments. As the graph shows, most investors are now as confident – or a little more confident – about investment returns as they were in the past.

The greatest investment concern for UK investors is the ongoing eurozone debt crisis, according to the report. Two-thirds (67 per cent) said the region is something that worries them as they look at their investment strategy for the next 12 months.

The group’s head of UK intermediary, Robin Stoakley, said UK investors are now recognising stockmarkets are showing strong growth.

“While investors understand they need to gain exposure to global – particularly emerging market – assets if they are to maximise growth potential, many remain cautious when it comes to committing their own money to these assets.”