Investment Strategies
UK Investors Smile On Global Markets Over Next Five Years

Investors appear to expect that once the mayhem caused by the pandemic has passed, on average, a recovery in economic growth will support markets and hence keep returns in the low-single digits over the coming five years. American investors are the most upbeat, Europeans less so.
UK investors still hope to rack up average annual total returns
of more than 11 per cent over the next five years, seemingly
unfazed by the COVID-19 crisis, according to the Schroders Global
Investor Study 2020.
Return expectations over the next five years have edged up to
10.9 per cent for investors globally, with investors in the
Americas expecting performance of 13.2 per cent, the study,
covering more than 23,000 investors from 32 locations around the
world, said.
European investors are not as confident and expect returns of 9.4
per cent.
Only 8 per cent of UK investors expect the pandemic’s disruption
to reverberate for more than four years. In fact, only 25 per
cent expect the ramifications to go on beyond two years, Schroders said.
The pandemic has, however, caused more than a quarter (27 per
cent) of investors to take risk off the table. As many as 78 per
cent changed portfolios in February and March. A further 24 per
cent said that they moved some of their portfolio to lower risk
investments.
Some 19 per cent took a chance to move some of their portfolio to
high-risk investments, while 20 per cent said that they had opted
to do nothing and stuck with their investments as they were.