Schroders research: The priorities of investors worldwide and in Greece – Economic Postman

The investors around the world choose mutual funds based on their personal needs and principles, according to Schroders’ Global Investor Study 2022. The results show that the investors who described themselves as “experts” focus more on the role their principles and values ​​can play in their investment decisions.

More than 23,000 investors in 33 countries worldwide participated in the Schroders study.

According to the survey more than half of the “experienced” investors say their personal principles are “very important” to them – significantly more than those who rank themselves at an average level of investment knowledge (16%) and those in the “basic knowledge” category (10%).

Furthermore, the importance investors place on their values ​​and principles increases with age. Almost 2 in 10 (76%) aged 71+ prioritize these aspects, possibly indicating that older investors are more confident and firm in their views.

Dimitrios Batzis, Head of Greece, Cyprus and Malta, comments:

“The mutation of investment criteria is more evident than ever, both in Greece and globally. Younger investors (ages 18-37), for example, are more likely to consider their principles and values ​​when making investment decisions than investors in later life (ages 38-50). At the same time, we see that less informed investors tend to overestimate their investment experience. Also noteworthy is the level of “investment illiteracy” we found with the Schroders study – a fact we focus on as a Group, as well as the need to educate and empower investors.”

Additionally, the results show that respondents overwhelmingly believe that as shareholders, they should be able to influence the companies in which they have invested. This is true across the spectrum of investment knowledge – from those who describe themselves as ‘newbies’ to the ‘experienced’ level of investment knowledge. An impressive 95% of “experienced/advanced” investors believe they should be able to do this, as do 69% of “newbies”.

Read also: Mutual funds: Equities boosted by $3.22 billion worldwide

Issues related to climate change are seen as the most important commitment priority in all countries. Three however, Mexico, South Korea and Belgium ranked natural capital and biodiversity issues as the most critical, which demonstrates the importance of environment-related issues.

Knowledge is power

However, globally, despite positive intentions, there remains a gap in terms of investors feeling confident in making (from their own point of view) the right or most appropriate investment decisions for their future. Some 82% of ‘experienced/advanced’ investors believe they have sufficient knowledge to feel confident in making investment decisions about their financial future, while only a quarter (26%) of ‘novice/basic’ of investors feel informed enough to do so.

This demonstrates the need for better financial education and the role that financial service providers must play. More than half (51%) believe that investment firms should be responsible for ensuring the adequate level of knowledge of employees in personal financial matters – Greeks also agree that there is a need for more education, while 33% believe that this should be the responsibility of financial advisors.

It is noteworthy, however, that 45% of Greeks believe that educational institutions should have a role in educating people about financial matters, while less than a quarter (20%) believe that it is their personal responsibility.

Greater knowledge drives retail investors’ attention to private assets

In addition, the study shows that people around the world now feel more confident in accessing investments that may have been considered “off limits” in the past. Private assets are a particular example, with 47% of investors feeling they have access to both private equity and digital assets.

However, while most respondents feel confident investing in private assets, some categories are still considered complex and require additional support from financial providers and advisors to access. This is particularly true in the infrastructure sector, where investors were more likely to invest through a product offered by a third party, such as a mutual fund (41%), than directly (37%).

Stuart Podmore, Head of Investment Propositions at Schroders, commented:

“This study demonstrates that now, perhaps more than ever, investors of all experience levels are increasingly willing to voice their opinions, should companies be unable to justify their actions. The pandemic has certainly taught us that companies, as well as governments, are under more scrutiny than ever to mitigate environmental, social and governance risks in a sustainable way. What is so interesting about our research this year is that social and governance risks are starting to move up the list of investors’ priorities.

Also read: The season of Great Disturbance is here for investors

“At the same time, increased investment knowledge appears to support individuals’ confidence in corporate decision support. As an active asset manager and custodian of our clients’ assets, we are committed to engaging in year-round dialogue on their behalf to support better investment outcomes.”

Georg Wunderlin, Global Head of Private Assets, Schroders Capital, commented:

“Schroders Capital, our private wealth business, is well positioned to support the ‘democratization’ of private wealth. There is growing interest from individual investors in building a holistic portfolio that includes private and public investments, as evidenced by our global study. Our teams are able to offer private investors access to this through a range of specialist private asset tools and mixed solutions that include both private and public assets.

“In addition to the benefits of diversification, mixed portfolios allow retail investors to overcome the barrier of illiquidity, which has made it difficult for them to invest in private markets on a larger scale. We will continue to innovate to help private investors, private banks and defined contribution pension schemes access the most attractive areas of the private markets.”

The article is in Greek

Tags: Schroders research priorities investors worldwide Greece Economic Postman

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