British investors are expecting average annual total returns in excess of 11% over the next five years compared with investors elsewhere in Europe who expect just 9.4%.
The optimism of investors in the UK, revealed in Schroders’ Global Investor Study 2020, comes despite the uncertainty caused by Covid-19.
It also comes in spite of the UK’s departure from the EU single market and customs union in December and the increasing possibility of no trading deal being agreed between the EU and the UK from January onwards.
The survey showed that average annual return expectations over the next five years have edged up to 10.9% for investors globally, with investors in the Americas expecting performance of 13.2%.
The study encompasses the views of 23,000 investors from 32 locations globally.
British investors have, however, lowered their income expectations, with 8.6% expected to be achieved over the coming 12 months, compared with 10.3% a year ago.
Only 8% of UK investors expected the negative economic impact caused by Covid-19 to reverberate for more than four years. In fact, only 25% expect the ramifications to go on beyond two years.
Doug Abbott, Schroders’ head of UK intermediary, said: “The UK economy is still in the midst of the financial havoc wrecked by the pandemic that has marked the end of the longest bull run in history.
“However, from our research, we can see that UK investors are looking beyond the immediate downturn to anticipate the shape of the post-Covid economy.
“Investors will need to be more agile than ever to achieve their financial objectives in the current turbulent market.”
