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High net-worth investors plan to invest more amid rising confidence



High-net-worth investor confidence has reached its highest level since the global economic crash, according to a new poll, leading many to plan to invest larger sums throughout 2014.

The survey, by the deVere Group consultancy, questioned more than 750 investors based in the UK, the US, Hong Kong, Indonesia, Japan, Thailand, India, South Africa and the United Arab Emirates, who have investable assets of more than £1m.

Some 57% of respondents said they were feeling bullish about the investment outlook over the next 12 months, an increase of 4% when compared to the 2013 survey. The group said that the last time investor confidence was so high was in March 2007, when 59% said they were confident in the international market.

The optimism is reflected in the fact that 77% of participants are “committed in investing more over the next 12 months”.  The findings follow a previous survey from the organisation that found high net-worths were prepared to take bigger investment risks to achieve their financial goals.

Nigel Green, founder and chief executive of deVere Group, said, “As this global sentiment survey concludes, there is a growing optimism amongst high net-worth investors. But as ever, high net-worth individuals should take nothing for granted.

“The key for wealth preservation is diversification and the compounding effect of re-investment as a defence against inflation.”

The upbeat sentiment has been linked with the eurozone returning to growth and the US performing strongly despite quantitative easing being tapered.

However, Tom Elliot, international investment strategist at the deVere Group, warned that the eurozone remained unbalanced and is being led by ‘core’ northern economies. He also questioned whether the economic recovery in both the US and UK was too reliant on real estate rather than investment

Elliot added, “Even bearing those points in mind, there’s no doubt that, overall, the world looks a safer, more ‘normal’ place now for high net-worth investors than it did this time last year.”

Further reading:

High net-worths prepare to take bigger investment risks in 2014

Vital for wealth managers to understand investors’ values and motives

BlackRock survey: investors focusing too much on the short-term

New York set to overtake London as top global city for ultra-wealthy

Global wealth at ‘all-time high’ of $241tn, but inequality still rife


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