Singaporean investors are upbeat on markets and returns and will likely take a more aggressive stance in their investments, according to a newly launched investor sentiment index.
JP Morgan Asset Management recently launched the JP Morgan Investor Sentiment Index, which is based on a half-yearly survey, the first of which was done last month. The index has been launched in other Asian markets since 2006.
Andrew Creber, Business Head of JP Morgan Asset Management, is hoping that the index will be “a sustained and useful barometer of investor sentiment in Singapore”.
The first reading for this month’s index is 134, reflecting “strong levels of optimism”. The result is mainly driven by 80 percent of investors, who expect that the Straits Times Index will rise in the next six months.
The survey involves around 500 respondents with five years of continuous investment experience and annual incomes of over S$60,000 each.
The poll comprises six questions that relate to an increase in the STI, market, economic and global economic environments, an increase in investments and the appreciation of personal portfolio.
The survey found that 63 percent of investors expect an improved economic environment, 66 percent expect an appreciation in their personal portfolios and 67 percent expect a better investment market.
The majority of the respondents (around 91 percent) believe that the Singapore economy has recovered from the worldwide recession. The recovery was driven by the government’s monetary policies and the recovery of global and property markets.
About 44 percent of the respondents aim to take an aggressive stance in their investments over the next six months, while a third intend to make some asset allocation shifts.
Mr. Creber said that “investor risk appetite is increasing. We expect to see continued potential in emerging market related investments as growth in these markets is set to outstrip growth in the developed world”.