GCC investors focusing on long-term growth: Study

Manama : More than three-fourth of investors in the GCC believe that long-term growth is more important than short-term gains, according to a study published by Natixis, an asset management. It also suggests that market volatility undermines investors’ ability to reach long-term savings and retirement goals.

The report was based on a survey among 7,000 individual investors globally, including 300 in the GCC, from the affluent to the high net worth.

The study found that an average of real annual return 10.8 per cent is the reported need of investors in the region, based on their understanding of their investment goals; 70pc of investors in the region believe this is realistic over the long-term and nearly two-third of surveyed investors agree that index funds offer better diversification than other investments.

 On average, investors in the GCC reported a return of 5.3pc in 2015, compared to 5.8pc globally. Over half of the surveyed investors also revealed that they did not make any changes to their portfolio in the midst of global market volatility in January this year, a trend that is in line with individual investors globally.

However, 44pc of GCC investors say they did not know their annual return for 2015 compared to 29pc globally. 

Around 79pc of surveyed investors felt that the responsibility of funding retirement is falling on their shoulders. However, investors are conflicted about this trend with nearly 20pc feeling optimistic, 18pc feeling resigned and 16pc feeling unprepared.

Overall, 70pc of investors agree that investors who have a professional financial advisor are more likely to reach their financial goals than those who don’t, and a further 74pc say professional advice is necessary to manage their investments and meet their retirement goals. 

However, the majority of investors (56pc) say making their own investment decisions is more important to them than outsourcing all investment decisions.

“One of the key aspects to have come out of this year’s survey of individual investors in the GCC is that investors are slowly moving towards a more goal-orientated focus compared to previous years,” said Jean Michel Bourgoin, Executive Managing Director Natixis Global Asset Management in the Middle East and North Africa.