Surveys

Asian Investors Expect Higher Returns Than American, European Peers

Editorial Staff, 14 December 2018

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Figures show that in Asia - the world's fastest growing economic region - investors are perhaps unsurprisingly the most upbeat in terms of how much money their portfolios will make in the next five years.

A study by wealth management house Schroders of investors around the world finds that on average they expect annual investment returns to come in at 9.9 per cent over the next five years, while those in Asia are more upbeat, expecting an 11.8 per cent result.

In the Americas, investors predict an annual result of 10.2 per cent, and in Europe, pulling up the rear, the result is 8.6 per cent.

Within Asia, Hong Kong investors expect their portfolios to return an average of 9.3 per cent over the next five years with “expert” investors expecting even more.

The Schroders Global Investor Study 2018 surveyed more than 22,000 investors in 30 markets.

Schroders’ chief economist Keith Wade recently cut his forecast for 2019 global growth to 2.9 per cent and expects it to slow down to 2.5 per cent in 2020. The estimate was based on the slower economic growth across major economies, which appears to be converging downward as the US slows and others fail to strengthen.

“We think emerging economies could slow to 4.5 per cent in 2019, as trade tensions and softer tech demand has impacted the wider Asian economies. However, with a peak in US rates and the start of tightening cycles elsewhere, we expect the US dollar to weaken in 2019 which could be the silver lining for more growth and less inflation across emerging markets,” Wade said.

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