Over one-third of UK investors plan to channel more money into the markets over the coming 12 months, according to research by Schroders, with equities appearing to be more favoured than bonds.
The Schroders Global Investment Trends Report surveyed 14,800 global investors and discovered that 37 per cent of the 1,008 respondents plan to increase the amount they invest.
The average investor expects to put 4 per cent more money to work than they did last year, with 56 per cent saying equities offer the greatest growth potential – compared with just 16 per cent citing fixed income assets.
Schroders head of UK intermediary Robin Stoakley says: “UK investors recognise investment opportunities are good – stockmarkets globally are showing strong growth and the FTSE has recovered the losses it suffered in 2008, growing 11 per cent already this year.”
Some 55 per cent of UK investors are looking for long-term capital growth and income generation from their investments but a significant share plan to put half of their new and re-invested funds in 2013 into low-risk, low-return assets. Only 12 per cent intend to allocate to higher-risk, higher-return investments.
Meanwhile, the survey identifies a “fundamental disconnect” between the assets that investors think will deliver the greatest growth over the next year and where they actually plan to invest.
For example, 57 per cent of UK investors predict the Asia-Pacific region will be the driving force behind this year’s investment growth – but only 15 per cent plan to invest in the region.
Equally while investors understand they need to gain exposure to global, particularly emerging markets assets if they are to maximise growth potential, many remain cautious when it comes to committing their own money to these assets. This paints a mixed picture for UK investors,” Stoakley says.
“On the one hand they are seeing growth opportunities in UK, emerging markets and Asia but on the other they remain overweight in cash and are potentially failing to capitalise on improving economic conditions.”