One-in-three UK Investors to 'Increase Amount They Invest', with a Focus on Equities, in 2013

LONDON, May 15, 2013 /PRNewswire/ --

UK investors are planning to increase the amount they invest over the next 12 months with the trend from bonds to equities set to continue, showing an increase of confidence among UK investors.

     (Photo: http://photos.prnewswire.com/prnh/20130515/613678-INFO )

The findings, from the Schroders Global Investment Trends Report, a survey of 14,800 investors (including 1,008 in the UK) reveals a third (37%) of UK investors are planning to increase the amount they invest in the next 12 months, with an average increase of 4%.

Furthermore, two-fifths (41%) of UK investors are more confident about investment opportunities in 2013 with more than half (56%) believing equities offer the greatest potential. This is compared with just 16% of UK investors who are looking to invest in bonds and fixed income assets in 2013.

The report also highlights a fundamental disconnect between the assets investors believe will deliver the greatest growth and where they are actually looking to place their money.

While more than half (57%) of UK investors see Asia Pacific as the engine for investment growth, just 15% say they will actually invest their own money in this region.

In addition, more than half of UK investors (55%) say they are looking to achieve long-term capital growth and income generation but in reality they intend to place half their new and re-invested funds in 2013 into low-risk, low-return assets, with just 12% of funds allocated to higher-risk, higher-return investments.

The greatest investment concern for UK investors is the on-going Eurozone debt crisis, cited by more than two-thirds (67%) as something that worries them. More than a half (51%) cite a weak economic recovery and continuing current low levels of interest rates (47%) as significant concerns.

Robin Stoakley, Head of UK Intermediary at Schroders stated: "UK investors recognise investment opportunities are good - stock markets globally are showing strong growth and the FTSE has recovered the losses it suffered in 2008, growing 11% already this year.

"As a result the trend to switch into equities and out of bonds is set to continue but UK investors risk missing other growth opportunities by keeping large sums of money in cash-based savings, particularly given that interest rates remain at record lows and show no signs of rising."