The Covid-19 pandemic has prompted more cautious outlooks from investors in Southeast Asia, says Schroders.
The findings were based on the Schroders Global Investor Study 2021, which polled over 23,950 individuals from 32 countries, including Singapore, Malaysia, Thailand and Indonesia.
The study was conducted between March to August 2021, during a time where many parts of Southeast Asia were mostly closed-off, seeing fluctuating lockdown cycles and slow vaccine rollouts.
The research looked at those who will be investing at least €10,000 ($15,820.70) in the next 12 months, and who have made changes to their investments within the last 10 years.
Of the participants, the survey found that 65% of retiree investors in Southeast Asia are now more conservative in terms of spending their retirement savings, compared to 58% of retirees globally.
Similarly, 75% of those in Southeast Asia are looking to save more towards their retirement, compared to the 67% global participants.
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On the whole, 82% of investors are now more likely to check their investments at least once a month, compared to 77% of investors in 2019.
Over half of Southeast Asian investors (52%) are also likely to save more once the Covid-19 situation normalises, higher than the global average of 46%.
Despite the challenges brought about by the pandemic, Schroders found that investor confidence has soared to its highest level since the study began in 2016.
In its survey, it was found that investors expected average annual returns over the next five years to be at 11.3%, 0.4 percentage points higher than the 10.9% predicted in 2020.
Investors from Southeast Asia were among the most bullish, with investors expecting annual total returns of 12.8% over the next five years. This was followed by investors in the Americas (12.5%), broader Asia (12.3%) and Europe (9.7%).
Investment confidence is being driven by investors who consider themselves to be “expert” or “advanced” investors with return expectations of 12.8%. In contrast, self-purported “beginner” or “rudimentary” investors have return expectations of 8.9%.
The survey also found that Southeast Asian investors have become more attentive to new investment opportunities that are reshaping the world.
Over the past year, 63% of investors in Southeast Asia placed their money in stocks and funds invested in internet and tech companies, while 55% invested in cryptocurrencies.
Safe haven investments also gained traction, with 60% of investors in Southeast Asia investing in gold, silver and precious metals.
“The pandemic has heightened our sense of uncertainty and challenged our ability to process risk, making many of us feel more anxious and out of control. These sentiments can clearly be seen in the results of our survey, with investors increasingly focused on saving, monitoring retirement contributions and checking their investments more frequently,” says Stuart Podmore, behavioural investment insights specialist at Schroders.
“The past 18 months have taught us that the future remains difficult to predict and a measured, consistent and patient approach to investing, focused on long term objectives and probable outcomes, is likely to stand investors in better stead,” he adds.
Photo: Bloomberg
