17-05-2013, 08:49 AM
SINGAPORE — Investor confidence is riding high in Singapore amid signs of gradual improvement in the global economy, with many expecting equities to do well this year although they remain cautious in asset allocation to avert market risks.
These include concerns over higher inflation, as well as uncertainties over the eurozone debt crisis and prolonged global recovery, the Schroders Global Investment Trends Report showed.
Concluded in April, the survey polled 14,800 active investors globally, including 518 in Singapore in the study’s first entry into Asia.
The results show that 73 per cent of local respondents view equities as the best asset class this year, followed by 35 per cent for gold and 28 per cent for corporate or government bonds.
This came on the back of upbeat investor sentiment, with 51 per cent of respondents saying they feel more confident about opportunities than they did a year ago.
The stronger confidence is likely driven by encouraging signs from the United States, where employment rate and consumer confidence is on the rise. Elsewhere, Asia’s momentum is still strong despite slower growth in China.
As a result, local investors are setting aside a sizable budget this year. “In terms of investment budget, Singapore stood at €49,500, which is about S$80,000, the third-highest in Asia,” said Ms Susan Soh, Managing Director of Schroder Investment Management (Singapore).
Results specific to Singapore were generally in line with global findings. The survey showed that 48 per cent of all respondents are more confident about their investments this year, while 68 per cent believe equities will do well.
But more in Singapore are worried about inflation, with 48 per cent of local respondents listing it as a top concern compared with 28 per cent globally. Other top concerns include the eurozone debt crisis (45 per cent) and weak or prolonged global economic recovery (41 per cent).
As uncertainties linger, Singapore investors are careful to plan their asset allocation, with respondents putting only 22 per cent of their investments into high-risk products despite a generally bullish view on the equities market, Ms Soh said.
“While market volumes have shown more investors coming in, investors are also smarter now and look at longer-term investments objectives when planning asset allocation.”
She added that 31 per cent of local respondents stated long-term income generation as an investment objective, while 19 per cent chose short-term income generation and 26 per cent selected capital growth.
“Strategies that cater to these investment objectives are broadly diversified, multi-asset investments, with a portfolio investing across different asset classes to dampen volatilities,” said Ms Soh.
“I would also advise investors to leave the asset allocation to fund managers, who can dynamically adjust between high- and low-risks assets for them. I think that’s a better approach, rather than directly making calls on specific assets and markets.”
These include concerns over higher inflation, as well as uncertainties over the eurozone debt crisis and prolonged global recovery, the Schroders Global Investment Trends Report showed.
Concluded in April, the survey polled 14,800 active investors globally, including 518 in Singapore in the study’s first entry into Asia.
The results show that 73 per cent of local respondents view equities as the best asset class this year, followed by 35 per cent for gold and 28 per cent for corporate or government bonds.
This came on the back of upbeat investor sentiment, with 51 per cent of respondents saying they feel more confident about opportunities than they did a year ago.
The stronger confidence is likely driven by encouraging signs from the United States, where employment rate and consumer confidence is on the rise. Elsewhere, Asia’s momentum is still strong despite slower growth in China.
As a result, local investors are setting aside a sizable budget this year. “In terms of investment budget, Singapore stood at €49,500, which is about S$80,000, the third-highest in Asia,” said Ms Susan Soh, Managing Director of Schroder Investment Management (Singapore).
Results specific to Singapore were generally in line with global findings. The survey showed that 48 per cent of all respondents are more confident about their investments this year, while 68 per cent believe equities will do well.
But more in Singapore are worried about inflation, with 48 per cent of local respondents listing it as a top concern compared with 28 per cent globally. Other top concerns include the eurozone debt crisis (45 per cent) and weak or prolonged global economic recovery (41 per cent).
As uncertainties linger, Singapore investors are careful to plan their asset allocation, with respondents putting only 22 per cent of their investments into high-risk products despite a generally bullish view on the equities market, Ms Soh said.
“While market volumes have shown more investors coming in, investors are also smarter now and look at longer-term investments objectives when planning asset allocation.”
She added that 31 per cent of local respondents stated long-term income generation as an investment objective, while 19 per cent chose short-term income generation and 26 per cent selected capital growth.
“Strategies that cater to these investment objectives are broadly diversified, multi-asset investments, with a portfolio investing across different asset classes to dampen volatilities,” said Ms Soh.
“I would also advise investors to leave the asset allocation to fund managers, who can dynamically adjust between high- and low-risks assets for them. I think that’s a better approach, rather than directly making calls on specific assets and markets.”
