Britons plan to invest more as confidence returns
The Schroders Global Investment Trends Report 2014 surveyed 15,749 investors across 23 countries, and found that almost two thirds (64%) of the 1,002 UK respondents are more confident about investment opportunities this year compared to less than half (41%) last year.
It revealed that 44% of UK investors plan to invest their disposable income and 17% will deposit it in a savings account. Only one-in-ten (9%) will use it to pay off debts, while 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 individual asset classes, 67% of UK investors said they would be looking to invest in equities, with the most popular being UK equities (43%). Just 11% said they would invest in bonds.
The British love affair with property is set to continue with 13% favouring bricks and mortar and 10% looking at property funds this year.
These trends are mirrored globally with 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 said: “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.”