Johanna Kyrklund
Nils Rode
Andy Howard
Wealth investors globally have been forced to re-evaluate their investment strategies in response to the new economic reality and ongoing inflation and geopolitical uncertainty, Schroders Global Investor Study 2023 has found.
Schroders’ flagship study which has surveyed over 23,000 wealth investors[2] who invest from 33 locations globally – including 400 South Africans, has identified that almost 80% of investors now believe that we have entered a new era of policy and market behaviour as a result of higher inflation and interest rates.
With higher inflation and interest rates, are we witnessing a regime shift for policy and markets?
Strongly agree 31%
Agree 47%
Neither agree, nor disagree 18%
Disagree 3%
Strongly disagree 1%
This is in stark contrast to last year’s study, when some respondents believed the market challenges to be a blip and predicted a quick return to the more benign, low inflation, low rates environment. As a result, more than half of global respondents have already adjusted their investment strategies and a third intend to do so. South African wealth investors, while a bit slower to do so, also plan to adjust their strategies.
Are respondents adapting their investment strategy for this new era?
Global SA
Yes 54% 45%
No, but I intend to do so 34% 47%
No 12% 8%
Our research shows that South African respondents who rated their investment knowledge as ‘expert’ were the quickest to react with 60% having already adapted their strategy.
Our study also highlights the importance of active fund management for many investors globally, while private assets were recognised as an essential diversifying tool with the democratisation trend continuing to gather pace. Interestingly, South Africa showed a heightened interest in digital assets and cryptocurrency as compared to global respondents.
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