Sustainability Investment Insights

Local overview Theme 1: The empowered investor Investor interests and behaviour Diverse interest in private asset classes: - People are showing interest in a diverse range of private assets, with 66% wanting to invest in private equity (e.g. venture capital) followed by digital assets and insurance linked securities both at 55%. People know how to gain exposure: - Many people think they can invest in a range of private asset classes, either directly or through a third-party product. Private equity is the asset class that investors feel most able to invest in with 47% think they can invest in private equity directly and 43% thinking they can invest as part of a third-party product. Investors are increasingly active: 48% of people are making changes to their investment portfolio at least yearly, with the people on average making changes to their portfolio 1.71 times a year. Total annual return expected and actual: - - People are expecting to make on average 9.76% return on their investment portfolios every year, which has decreased since 2021, where the average annual return was 10.73%. The actual annual return on investment that people made on average was 9.70%, slightly less than they expected to make. People want customised funds: - - All investors believe that it is important to invest in funds that are tailored to their principles/needs, however those with expert/advanced investment knowledge value this more (79%). As people gain investment knowledge, their preferences change. Indeed, people with expert/advanced investment knowledge have a diverse range of interests when it comes to the level of customisation they expect from their advisors/brokers, but there is a particular focus on customisation in line with return expectations. Source: Schroders Global Investor Study, conducted between 18th February - 7th April 2022 5 Schroders

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