Amazing investor confidence reaches all-time high in 2011

The Friends Investor Attitudes Index reached 21 points in, up from 16 points a year ago.

According to a release, a year on from the launch of the Friends Provident International Investor Attitudes report in June 2010, Singapore investor confidence is at its highest, with the Friends Investor Attitudes Index reaching 21 points, up from 16 points a year ago.

Investor confidence remains strong as 61% felt that the investment market has improved in the last six months and 57% felt that it will continue to improve.

This positive investor sentiment is in line with the Singapore government’s announcement of strong economic growth of 8.3% in the first quarter of 2011 and with the latest quarterly findings released by the Monetary Authority of Singapore in March which predicted that the economy is expected to expand by 6.2% this year.

Chris Gill, general manager at Friends Provident International, Singapore, said:
"The Friends Investor Attitudes Index score in Singapore has remained very positive since October 2010, reflecting the stability of the local economy. A year since we launched the Friends Provident International Investor Attitudes report, it’s good to see investor confidence steadily strengthening. The country continues to attract both local and foreign investments, providing ample business opportunities and adding to an increase in the build up of wealth available in Singapore."

Behind the stable index, the report revealed fluctuation in the asset classes investors preferred, indicating Singapore investors are getting savvier in their investment strategy as their confidence grows.
The fifth wave of the report shows investors are more likely to invest in gold and cash, with gold maintaining a steady rise since the report launched in June 2010. Equities/shares are the third most popular asset class among investors while collectables remain the least favoured.

Investors are getting bolder in their investment choices and are looking towards regular premium insurance products and pensions as part of their investment portfolio. Fixed rate bank deposits are least favoured. Investors are as likely to choose medium term investments as they are to pick a mix of terms.

The report revealed the importance of financial advisers with 61% of investors turning to financial advisers for advice before making an investment decision – an increase of four percentage points since January 2011. Banks, on the other hand, are seeing a decline with only 26% of investors saying they would turn to them for financial advice, a drop of seven percentage points from January 2011.

Mr Gill commented:
"It is encouraging to note that 61% of investors now choose to speak to a financial adviser to help map out their investment needs and appetite prior to making a decision, compared to 50% a year ago. Wherever they choose to go for advice, it is important that investors review their portfolio on a regular basis. This is particularly important if they experience changes in their life, such as getting married, starting a family or buying a property."

Meanwhile, more than three quarters of respondents said that they hold life insurance, nearly two thirds of respondents hold critical illness cover, and nearly two in five respondents have spoken to an adviser about protection products and have purchased a product. Of these respondents, the affluent followed by married people are most likely to own protection products or hold a range of protection products.

The report also revealed that men are more likely than women to seek advice and purchase a protection product, whilst those on lower incomes are less likely to have seen a financial adviser.

Mr Gill said:
"It's not surprising to see that married people are more likely to have some type of protection insurance. Marriage often brings the desire to protect loved ones from any unforeseen problems with their health or finances. While the results show that people have made some provision, we don't know if this is sufficient. I urge people to check that their level of protection is sufficient and to seek help from a professional adviser."

Photo credit: Comprale@Ancash