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UK investors bullish on UK equities
25 March 2014
Independent research key to decision making
Franklin Templeton Sentiment Survey
Global investors are more optimistic about prospects for 2014,
but reluctant to take on more risk in their portfolios,
according to the 2014 Franklin Templeton Global Investor
The survey polled 11,113 investors in 22 countries across
Africa, Asia Pacific, the Americas and Europe on their current
attitudes towards investing and their expectations for 2014 and
the decade ahead.
The percentage of respondents who think that the UK will
deliver the best equity returns in 2014 and over the next 10
years has increased significantly. Although UK investors expect
Asia to deliver the best equity returns in 2014 as well as over
the next decade, the number of respondents holding this view is
down significantly from last year.
In addition, there has been a significant decrease in the
number of investors who think precious metals will perform best
both in 2014 and over the next 10 years, while there has been a
significant increase in the number who think equities and
property will perform best this year.
The findings show that the majority of UK investors surveyed
(73%) intend to use their own research when deciding where to
make their next investment, with a relatively modest 23%
intending to use a financial advisor. Investors with household
incomes of £70,000 ($115, 542) or more are the most
likely to pay for the services of a financial advisor, whilst
investors aged from 25-34 are most likely to seek help from
family or friends.
Ian Wilkins, country head UK said, "We are excited by the
growing investor optimism for equities and for UK equities in
particular. These findings are supported by recent IMA figures
which show that equity was by far the best-selling asset class
in 2013. By region, UK equity funds were the second
best-selling in 2013 with net retail sales of £2.9
billion – the highest since 2001."
Globally, 52% of investors are planning to become more
conservative with their strategies this year. However, this
risk aversion is less pronounced than last year when the annual
survey showed that 57% of investors planned to be more
conservative with their investments.
This trend towards conservatism runs counter to the fact that
most investors expect better stock market performance and
higher returns from their investments this year, as well as the
fact that four out of five investors feel optimistic about
reaching their financial goals.