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Wednesday, May 15, 2013

U.S. Retail Investors Want to Invest More

Reported by Tommy Fernandez

Americans are more confident about the markets and want to plunk more money into investments, according to survey data just released by Schroders.

According to the survey the average amount to be invested / re-invested by American investors in 2013 is just over $132,000, although just over a quarter (26% percent) are looking to invest between $13,000 - $30,000. Roughly half (48 percent) are looking to invest $100,000 or more.

The data comes from a survey conducted by Research Plus, of 14,800 active investors across 20 countries in Europe, Asia and the U.S. with a minimum of €10,000 (roughly $13,140) of investible assets. Out of these 14,800, 2,011 polled were in the U.S.

The survey was commissioned by Schroders.

Other findings from the survey include:

Investor Interest in Regions


  • Eight-in-ten (80%) investors in the US have faith in their own country to deliver the best growth in the next 12 months, the highest proportion for a country outside of Asia.
  • Just under four-in-ten (37 percent) think Asia Pacific, including China, has the best potential.
  • A fifth feel South America (21 percent) or North America (20 percent) have the best prospect for growth.

    Investor Interest in Asset Class


  • Seven-in-ten (71 percent) American investors are looking to invest in equities (combined), with the most popular by far being US equities (55 percent). Global equities (18 percent) and global emerging market equities (18 percent) also having significant support.
  • A quarter (25 percent) are looking to invest in corporate bonds/government bonds/emerging markets debt (combined), including a seventh (15 percent) in government bonds.
  • Slightly more (17 percent) said they were not confident in any asset classes for the year ahead.

    Investor Interest in Products


  • Multi-asset funds (36 percent) are likely to be the most popular product type invested in during the next 12 months by American investors, with equity-based trusts/funds (29 percent), emerging markets equity-based investment trusts/funds (21 percent), ETFs (21 percent) and savings accounts/bank deposits (20 percent) also selected by at least a fifth of investors.
  • Slightly less (16%) said they were not confident in any types of products for the year ahead.

    Investor Risk Appetite


  • On average, American investors will allocate 40 percent of their investments to low risk/return investments, with one-in-eight (12 percent) who won’t allocate any to this type of investment.
  • On average, American investors will allocate 43 percent of their investments to medium risk/return investments, with just over one-in-twenty (6 percent) who won’t allocate any to this type of investment.
  • On average, American investors will allocate 17 percent of their investments to high risk/return investments, with three-in-ten (30 percent) who won’t allocate any to this type of investment.

    The research also indicates growing investor confidence and a desire to put money into asset classes which they expect to deliver strong returns – with 48% of investors saying they are more confident about investment opportunities in 2013 and more than one-in-three (38%) looking to increase the amount they invest over the next 12 months.  

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