Globally, institutional investors are less confident about future performance, while European investors are the most downbeat, Schroders found.
European investors are less confident than investors in other regions about achieving expected returns on their portfolios, according to a study by Schroders, which surveyed 770 institutional investors on their investment perspectives across the globe.
Switzerland however, is bucking the European trend with investor sentiment in line with the international average, the study found.
Corona Passé
Inflation, geopolitical tensions, and rising interest rates all weigh on investors’ minds, while the covid-19 pandemic is no longer perceived as a «significant negative factor,» it said.
Last year 48 percent of institutional investors across the world expected to generate more than 6 percent annual return on their portfolios over the following five years, while among those asked in 2022, only 42 percent expected to do so.
Confidence Levels
The energy crisis is an imminent concern in Europe but this is not the case in the US, which is energy independent and could be part of the reason why American investors are more optimistic about future performance than their European counterparts.
Greenwashing vs Impact
Concerns around the performance of sustainable investments over the past 12 months have also risen, with Asia-Pacific and Latin America most worried.
In Switzerland, 75 percent of investors cite greenwashing as the biggest concern related to sustainable investments. Globally this could be something that is boosting the growing popularity of impact investments seen this year, which 48 percent of institutional investors named as their preferred approach to investing sustainably, compared to 38 percent in 2021.
