Thursday, May 26, 2016

Dubai: In an indication of evolving investment behaviour in the Middle East, 78 per cent of investors in the GCC believe that long-term growth is more important than short-term gains, according to new research published on Wednesday by Natixis Global Asset Management.

The study also suggests that market volatility undermines investors’ ability to reach long-term savings and retirement goals. An average of real annual return (above inflation) of 10.8 per cent is the reported need of investors in the region, based on their understanding of their investment goals.

About 70 per cent of investors in the region believe this is realistic over the long-term. Nearly two-third of surveyed investors agree that index funds offer better diversification than other investments, Natixis said in a statement.

“One of the key aspects to have come out of this year’s survey of individual investors in the GCC is that investors are slowly moving towards a more goal-orientated focus compared to previous years,” said Jean Michel Bourgoin, executive managing director of Natixis Global Asset Management in the Middle East and North Africa.

“This trend is encouraging — even if investors still need to improve the analysis of their long term requirements — being goal-focused and ensuring robust financial planning are key if you want to build a more intelligent and reliable portfolio.”

Natixis commissioned an independent survey of over 7000 individual investors globally, including 300 in the GCC — from the affluent to the high net worth.

Staff Report

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