FD, the strategic communications segment of FTI Consulting, Inc., (NYSE:FCN) and the leading global investor relations and communications consultancy, released today the results of its inaugural Global Investor Review, a worldwide survey of leading institutional investors. The survey revealed that investors remain confident that global indices will continue to rise further despite the recent market rally.
FD interviewed 150 of the world’s largest investment funds, responsible for over $2.5 trillion (U.S. Dollars) under management, during the third quarter of 2009. Respondents were based in the United States, the United Kingdom, Europe and Asia Pacific, with a broadly similar sample size from each geographic market.
The survey aimed to provide senior management of listed companies with a valuable insight into investor sentiment across the world, as well as providing guidance on the key themes for 2010. The survey focuses on three key areas: investor confidence, geographic investment trends and the importance of equity market regulation.
Key Findings
• Over 75% of investors questioned were confident that the outlook for equity markets was either neutral or positive looking into 2010.
• The key driver of this increased market confidence has been the broad range of government stimulus packages across the world. Investors were cautious on the outlook once this stimulus is removed, bringing sharply into focus this week’s G20 Finance Ministers meeting in Scotland.
• There was a marked difference of opinion on the outlook for the financial sector, with investors including it amongst their most favoured sectors for 2010, but also amongst their least favoured.
• Healthcare and technology sectors are favoured the most; opinion is divided on financial services; consumer-related companies were the least preferred.
• Investors based in Asia Pacific are the most optimistic across the world, with United Kingdom (UK) investors the most pessimistic.
• 80% of investors said Asia-Pacific is the preferred region for investment, with the United States (US) the next in line.
• Investors remain sceptical towards Western and Eastern European companies and the UK.
• 73% of investors identified a market’s regulatory environment as being a major factor in determining their investment decisions.
Commenting on the findings of the survey, Charles Watson, FD’s Global Chief Executive Officer, said: “This survey confirms markedly different investor sentiment firstly across markets, with Asia Pacific investors the most bullish and UK investors the most bearish, and secondly across industry sectors where a wide range of sentiment is apparent.”
“Accordingly, these findings suggest that companies should be planning their Investor Relations programs from a global perspective – not merely narrowly focusing on their domestic markets, but also exploiting other more liquid and active geographies. Going into 2010, it is clear that whilst confidence has improved dramatically since the start of the year, markets will increasingly reflect fundamentals and not sentiment.”