Overall, investors are wary, and even in Singapore, “there is now more preference for short-term” investment strategies, Friends Provident International observes in its second quarterly Investor Attitudes report.
In the UAE, spooked investors are preferring gold and cash to other asset classes, while 16% also said they would not invest “due to uncertainty in the current market”, FPI notes.
Indeed, FPI said in a statement accompanying its report, gold and cash “are still the top two asset classes that respondents feel are the most suitable to invest in…across [all] three countries”.
“The proportion of respondents who viewed gold as a ‘good’ or a ‘very good’ investment increased from 49% to 55% in this wave [survey], while the preference for cash increased from 48% to 50%.
“There was also a significant positive shift in property which saw an increase from 41% to 47% in the proportion of investors viewing it as a ‘good’ or a ‘very good’ investment. Hong Kong respondents were the main contributors to this shift.”
Bonds ‘good’ or ‘very good’
Another significant change across all three countries since FPI conducted its survey three months previously was “the number of respondents viewing bonds as a ‘good’ or a ‘very good’ investment” – 37%, compared with 33% in the earlier poll.
The survey was conducted online simultaneously in all three countries between 26 July and 6 August, to ensure that the respondents were answering the questions during “a similar financial market environment”, according to FPI, the Isle of Man-based international arm of Friends Provident, which is re-branding in January as Friends Life.
Hong Kong, Singapore and the UAE are FPI’s three principal markets. Jonathan Hall, general manager and director at FPI, said the report will provide the company "with valuable information which we can use to tailor our products to meet the needs of our customers".
Results reflect local conditions
In a summary of its findings, the Investor Attitudes report notes that its findings of cautious investors in the UAE and “more confident” ones in Singapore are not surprising, given the local economic climate in these two markets.
Among the most interesting findings in the report is that friends and family are cited as a source of investment advice by an average of 53% of respondents, with financial advisers in second place at 49%.
Between 4% (Hong Kong) and 9% (the United Arab Emirates) of those surveyed said they “won’t seek any advice at all”.
Some 1,000 people were surveyed in Hong Kong and Singapore, while 752 were interviewed in the UAE. FPI said these numbers meant that the findings were "nationally representative" for each country.
To view the report, click here.
