SANTIAGO, CHILE – (Marketwire – May 14, 2012) – In the short term, respondents wereremain cautious, very conservative, and please keep yourcapital investment close to home, according to a global surveyFranklin Templeton. When asked about their long-term prospects,such a view begins to change.
Conducted earlier this year, the
Optimism font-style:normal;”> style=”font-weight: bold; In its annual global survey, Franklin Templeton noted that in relation toactions, 48% of respondents in Chile expect a rate ofreturn between 5 and 15% in 2012. Similarly, optimismincreases when respondents consider a horizon of 10 years, with aAnticipating 57% annual returns of investment in the shares of between 5 and25%.
In terms of investments held by the respondents currentlyChilean real estate account for 38%, followed bymutual funds with 21% precious metals 15%, 11% stocks and bonds4%.
The recent global uncertainty has generated investmentsconservative and risk averse
Uncertainty about the global economy continues to influence stronglyrespondents’ attitudes towards investments. Almosthalf of respondents in Chile (49%) believe that the world economy hasdeteriorated, and 36% indicates that it has become “something or more” risk aversein the last three years.
“The overall uncertainty continues to weigh on the minds ofinvestors, and reinforces the need for a planwell-diversified investment and management focusrisk, “says Greg Johnson, President and CEO of FranklinTempleton Investments. “This is clearly an area where we believefinancial advisors play a key role, through the value of yourexpertise and advice to investors. “
According to the survey, respondents value the advice Chileanprofessional when it comes to investments, with 79% of participantsconsidering the advice of a financial advisor as important or veryimportant.
1.Fuente: International Monetary Fund, database OutlookWorld Economy, September 2011. Net Domestic ProductGross is based on the portion of purchasing power parity of the totalworld.
Long term interest in global opportunities
The survey states that the respondents in Chile have a strong biasto their country of origin and a preference to investment closerhouse in the short term. Given the option of investing in a single regionnext year, almost half of respondents (47%) invest incountry of origin.
The bias towards the home country can be generated by two factorsmajor. According to Professor Dan Ariely of Duke University, “The firstis a belief too optimistic about the economy itself. Thesurvey shows that respondents in almost all countries havean expectation of performance in their countries more than what thestatistics considered realistic. The second reason is rather toprocedural difficulties to invest abroad, such as aless knowledge about access to such markets, lack ofrecommendations for such products and, of course, fewer productsavailable. “
In the long term, the situation changes. Chilean respondents showa desire to increase their investments increasingly outside their local marketin the next 10 years. Almost half of Chilean respondents (49%)expected that a fifth or more of its investments are made abroadhome when the time horizon extends into the next 10years, indicating a clear trend towards global investments in thelong term.
“Many individual investors still consider their local marketsas the safest place to invest. Wherever you are in the world, thepossibility that his own country consistently exceeds all otheris quite remote. Since there are markets around the world who aregaining momentum at the moment, there are many new and compellinginvestment opportunities. Currently, most of the opportunities forinvestment in the world are global, “says Sergio Guerrien, Director andCountry Manager for South America of Franklin Templeton Investments.
“While many investors may have a bias towards their country oforigin in the short term, the findings of the survey show that therespondents have an interest in the longer term to expand its universe ofinvestments into more countries, “says Greg Johnson.
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returns in emerging markets Respondents kept a little more optimistic about theinvestment opportunities in emerging markets compared toopportunities in developed countries. Expectations are that theinvestments in emerging markets, both stocks and bonds,yield the strongest returns compared with marketsdeveloped over the next five years.
In Chile, respondents are optimistic when it comes to actionsemerging markets, with 70% expecting that the market sharesemerging to be a strong option for the next five years, withreturns between 5 and 25%.
“Emerging markets are growing rapidly and are no longer marketssmall or niche. Many have become key global economies,offering significant investment opportunities. The results of thesurvey show that Chilean investors surveyed are notignoring this trend, “states Guerrien.
When asked about which elements take into considerationinternational investments, nearly 70% of respondentsChile indicates that the level of risk is important or very important,followed by brand recognition (65%) and yield (64%).
Methodology font-style:normal;”> style=”font-weight: bold; The Survey on the Global Investor Sentiment FranklinTempleton 2012 included responses from 20.623 people in 19 countries: Brazil,Chile, Mexico, Canada and USA in America, Australia, China, Japan, HongKong, India, Malaysia, South Korea and Singapore in Asia-Pacific, Belgium,France, Germany, Italy, Poland and the UK in Europe. The survey wasdesigned in collaboration with Dan Ariely, a professor of psychology and economicsbehavior at Duke University and was conducted online by Qualtrics. TheRespondents were selected from those who volunteeredvolunteered to participate in online polls and surveysconsidering those who were 18 years of age or older. Thesurveys were conducted between 30 January and 13 February inall countries except Canada, where the survey was conducted between 2 andMarch 8. Overall, the gender distribution, marital status,educational and age was representative of the general population of each country.
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