Real Estate Investor Magazine South Africa July 2015 | Seite 55

Top Goal Top 3 Goals Retirement 31% 61% Purchase a new home 17% 37% Investing in/starting a business 14% 33% School/university fees 13% 33% Major renovation 6% 18% Emergencies 5% 34% Planning a vacation 5% 30% Inheritance for my family 4% 17% Wedding 2% 6% Luxury purchases 1% 7% Philanthropy 1% 2% Item Perceived Top-Performers in South Africa In 2014 Other investment goals Perceived Top-Performers in South Africa In 2015 2% 22% Real Estate: 65% Real Estate: 64% Stocks: 48% Stocks: 47% Precious Metals: 44% Precious Metals: 49% performance in 2014. In South Arica 50% believe the stock market was up last year, when in fact the JSE FTSE All Share Index returned 7.6% ( JSE research). Stocks Remain in Favor Real estate (52%) and precious metals (39%) round off the top three on the list of investors’ most favored asset classes globally. There has been little movement in the top three over the past three years, which also holds true when looking at a longer investment horizon. Global investors continue to rank stocks (55%), real estate (55%) and precious metals (42%) as the top three performing asset classes over the next decade. Meanwhile the survey also shows that South African investors believe that property, precious metals and stocks will be among the top performing asset classes in 2015 and over the next decade. When it comes to concerns, South African investors are most concerned about the health of the local economy, unemployment and inflation. While the state of the South African economy is the primary concern, the sustained weakness of the Rand has prompted worries about a rising inflationary outlook. Risk Management Is Key Given global investors’ views on the riskiest asset classes, an overwhelming number of global investors (94%) ranked the importance of risk management expertise as somewhat to very important. www.reimag.co.za “Views of what constitutes risk vary within the industry, and it is important for investors to have a clear understanding of what risk means to them and how it impacts their portfolios,” Bailey said. “In today’s volatile, low interest rate environment, many investors are looking for actively managed investment solutions from managers employing strategies that can help reduce volatility in unpredictable markets while seeking to provide attractive risk-adjusted returns,” she added. Security, Quality of Life Influence Investing Goals Globally, investors’ ranked retirement, planning a vacation, and being prepared for emergencies as their top three investment goals in the year ahead. In terms of top investment goals for 2015, 61% of South African investors cite planning for retirement as their main investment goal for the year. This is followed by purchasing a new home (37%) and emergencies (34%). Survey findings from this year also indicate that past performance (30%) and suggestions by an advisor are the top influencers when selecting a unit trust. RESOURCES Franklin Templeton Global Investor Sentiment Survey (2015), ORC International and Franklin Templeton Investments South Africa (Pty.) Limited JULY 2015 SA Real Estate Investor 53