Real Estate Investor Magazine South Africa July 2015

TRENDS South African Investor Optimism Dominates Retirement And Buying A New Home Are Top Investment Goals I n the 2015 Franklin Templeton Global Investor Sentiment Survey, over 11,500 investors in 23 countries shared their views and current attitudes towards investing, their expectations for 2015 and the decade ahead. Some of the key highlights include: • Retirement and buying a new home are among the top investment goals. • The state of the local economy, unemployment and inflation are amongst the top concerns for South African investors. • South African investors (83%) are highly optimistic about reaching their financial goals. • Past performance (30%) and suggestions by an advisor (26%) are the top influencers when selecting a unit trust. South African investors remain optimistic about the coming year. The percentage of respondents who believe that the best equity returns will be from the local market over the next decade have marginally increased compared to 2014 findings. The survey also shows that the South African investors believe real estate, precious metals and stocks will be among the top performing asset classes in 2015 and over the next decade. 52 JULY 2015 SA Real Estate Investor “The survey clearly shows the growing optimism in South Africa. Despite confidence in local markets, it is interesting to note that many people are considering increasing their global exposure over the coming years. We believe this is a positive trend as it helps South African investors diversify their portfolio across countries and asset classes,” says Jo-Anne Bailey, South Africa Country Manager, Franklin Templeton Investments. “South African investors are confident about domestic equity and anticipate increased investing in equities over the long-term.” When it comes to perceptions of past performance, the survey has consistently shown that investor perception often diverges from reality. This year’s survey showed more than half (55%) of investors believe their local stock market was up last year. When looking at where global stock markets ended the year, 60% missed the mark. According to MSCI research, only eight of 23 markets surveyed (35%) experienced positive www.reimag.co.za

Real Estate Investor Magazine South Africa July 2015 | Page 54