Schroder Investment Management (Hong Kong) Limited
Level 33, Two Pacific Place
88 Queensway, Hong Kong
施羅德投資管理﹝香港﹞有限公司
香港金鐘道 88 號太古廣場二座 33 字樓
Tel 電話：+852 2521 1633 Fax 傳真：+852 2530 9095
www.schroders.com.hk
Press Release
Hong Kong investors’ confidence drops nearly 10%
Market turbulence brings investors back to reality, Schroders survey revealed
20 May 2015
HONG KONG – Only 36% of Hong Kong investors are more confident about investment opportunities
in 2015, down from last year’s 45%, the recent Schroders Global Investment Trend Survey 2015
revealed. Expectations on risk/reward are modest – 72% of the 500 Hong Kong residents surveyed
plan to invest in low and medium risk assets, and 93% of all respondents expect to make a profit with
an overall return of about 8%, which may not be easy to achieve given choppy markets and low, patchy
growth around the world.
Hong Kong is the only market amongst the nine Asia markets surveyed that expect a single digit return
on their investment this year. Part of the reason for this could be that 88% of the respondents only
achieved an average 7% investment return last year, which was one of the lowest in the region.
Despite this, 80% of Hong Kong investors said they will continue to rely on their own judgement to
make investment decisions, and of whom 44% will change their investment strategy in response to
current market conditions while 36% plan to invest in broadly the same asset classes as previous
years. Only 16% said they would seek professional investment advice.
Asia remains the most favoured investment region amongst Hong Kong investors, as 75% of them think
it will deliver the best returns this year, 3% less than in 2014. North American is the second most
favoured region, with more than 31% of investors think it will perform well, 4% more than last year.
While only 21% of Hong Kong investors prefer to invest in Europe, Schroders believes the recent strong
economic data and corporate earnings shows this region may be the better investment opportunity. The
drop in oil prices, weaker euro and lower funding costs are key factors that will potentially help
Eurozone corporates achieve double-digit earnings growth in 2015.
Grace Ho, Head of Marketing, Asia, Schroders, said: “Whilst some Hong Kong investors may have
made a small fortune from the Hong Kong stock market rally in April, the rally was not supported by any
fundamentals and we are already seeing the affects of this. There have been more peaks and troughs
in the market, and frequent news reports of huge investment losses from speculative bets. As such,
investors may consider using professional advice to help them diversify investment risks and generate
potential sustainable, long-term returns.”
In fact, Hong Kong investors are thinking more long-term and are realising the importance of
sustainable income, and this is where professional investment advice can provide value.
Nearly all (94%) survey respondents said they plan to invest in assets that generate a regular income.
The top five reasons for this are bank interest rates are too low (38%), long-term re-investment strategy
(32%), preference for dividend paying companies over growth investing (29%), rising cost of living
(26%), and economic and political instability (24%).
Schroder Investment Management (Hong Kong) Limited
Level 33, Two Pacific Place
88 Queensway, Hong Kong
施羅德投資管理﹝香港﹞有限公司
香港金鐘道 88 號太古廣場二座 33 字樓
Tel 電話：+852 2521 1633 Fax 傳真：+852 2530 9095
www.schroders.com.hk
Volatility of markets since the financial crisis may have influenced investors’ search for income. The
Schroders survey showed that 26% of Hong Kong investors plan to invest directly in stocks while a total
of 34% plan to invest in multi asset funds, equity funds and bond funds to generate regular income in
the next 12 months.
It also revealed that 33% of Hong Kong investors plan to use the income generated to
supplement their salary, 29% will reinvest the income to further grow their investment portfolio, and
14% will contribute the income to their retirement savings.
Grace Ho continued, “Those planning to go at it alone may be too focused on their home region or the
asset classes they are most familiar with, and are not maximising their investment capital while at the
same time exposing themselves to unnecessary risk. Some professional investment advice can give
investors a global perspective and help them pick and choose assets around the world that can help
achieve their investment target and provide sustainable income.”
Ample liquidity from quantitative easing actions by the European Central Bank and the Bank of Japan
have been driving growth in these markets, as evident by the better-than-expected economic data and
uptick in business activities. The potential interest rate hike in the U.S. means the economy is getting
back on track, which also means trouble for some emerging markets. However, there are pockets of
strengths in emerging markets such as energy importers (benefiting from lower oil prices) and
manufacturers who stand to benefit from better growth in Europe and the U.S. Emerging markets with
strong balance sheets and low external financing, such as India, are markets that are worth looking at.
Given the patches of growth and opportunities spread across the globe, investors should consider
adopting a multi asset income strategy to achieve their investment targets.
A multi asset approach aims to achieve similar yields as direct investments in high yield bonds and
dividend stocks, but by adding investments in REITs, global equities and fixed income, and emerging
market debt, the strategy provides wider diversification and lower volatility while at the same time avoid
yield traps that are present in fixed income and equities.
Grace Ho concludes, “A professionally managed multi asset strategy focuses on higher quality
securities that will grow and sustain income returns. The approach allows for active asset allocation and
utilisation of tools and methods, such as currency management, to maximise potential returns for
investors. At Schroders, we expect the appetite for income will only grow in a low growth and low
interest rate environment. Sustainable income investing and the flexibility that it brings will ensure it
remains an important source of potential returns for years to come.”
Schroders commissioned Research Plus Ltd to conduct an independent survey of 20,706 retail
investors in 28 countries around the world who intend to invest at least €10,000 (about HK$89,000)
during the next 12 months. The survey was conducted online between 3 and 27 March 2015 and these
individuals represent the views of investors in each country involved in the survey. A total of 500 retail
investors in Hong Kong participated in the survey, with a near equal split between male and female.
The average age of the Hong Kong respondents was 37 years old.
- End -
Schroder Investment Management (Hong Kong) Limited
Level 33, Two Pacific Place
88 Queensway, Hong Kong
施羅德投資管理﹝香港﹞有限公司
香港金鐘道 88 號太古廣場二座 33 字樓
Tel 電話：+852 2521 1633 Fax 傳真：+852 2530 9095
www.schroders.com.hk
For further information, please contact:
Yvonne Ma
Head of Marketing, Hong Kong and China
Schroders
Tel: +852 2843 7725
Email: yvonne.ma@schroders.com
Peggy Lai
Marketing Manager, Hong Kong
Schroders
Tel: +852 2843 7745
Email: peggy.lai@schroders.com
Thomas Kwan
Madaket and Company Limited
Tel: +852 9018 2500
Email: thomas.kwan@madaketco.com
Mei Ying Chan
Madaket and Company Limited
Tel: +852 6425 5664
Email: meiying.chan@madaketco.com
Schroders plc
Schroders is a global asset management company with £319.5 billion (EUR441.6 billion/$474.3 billion)
under management as at 31 March 2015. Our clients are major financial institutions including pension
funds, banks and insurance companies, local and public authorities, governments, charities, high net
worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate
from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has
developed under stable ownership for over 200 years and long-term thinking governs our approach to
investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.hk.
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Schroder Investment Management (Hong Kong) Limited
Level 33, Two Pacific Place
88 Queensway, Hong Kong
施羅德投資管理﹝香港﹞有限公司
香港金鐘道 88 號太古廣場二座 33 字樓
Tel 電話：+852 2521 1633 Fax 傳真：+852 2530 9095
www.schroders.com.hk
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This material, including the website, has not been reviewed by the SFC. Issued by Schroder Investment Management
(Hong Kong) Limited.
Schroder Investment Management (Hong Kong) Limited
Level 33, Two Pacific Place, 88 Queensway, Hong Kong
Telephone +852 2521 1633 Fax +852 2530 9095