Study shows Malaysian investors prioritise climate issue, natural capacity, diversity

However, there are still gaps between advanced/expert and beginner/rudimentary levels in terms of knowledge for investment

by AUFA MARDHIAH / pic TMR FILE 

YOUNG Malaysian investors aged between 18 and 37 are prone to prioritise principles and values in investing.

The Schroders Global Investor Study 2022 on 24,000 individuals from 33 locations globally (Indonesia, Malaysia, Singapore and Thailand) found that young investors also felt more empowered to influence corporate decision-making through investments.

The study also stated that expert levels prioritised more on the importance of personal principle in investing (51% Malaysia, 58% South-East Asia and 55% globally) compared to intermediate level (17% Malaysia, 21% South-East Asia and 16% globally) and rudimentary level (16% Malaysia, 15% South-East Asia and 10% globally).

Furthermore, 97% experts also believed that they have the power to influence the company they invested in.

Most crucial issue they consider before investing in a company includes climate issues as well as natural capital and biodiversity.

However, there are still gaps between advanced/expert and beginner/rudimentary levels in terms of knowledge for investment.

In Malaysia, 82% respondent experts were confident with their knowledge in making the right decisions for financial future.

Nonetheless, 61% investors in South-East Asia are still dependent on financial providers (from independent financial advisors, governments and regulators, and educational institutions) for investment knowledge compared to 51% global investors.

With the focus on private assets, 54% of retail investors in Malaysia are more prone to access real estate investment, digital assets investment (49%) and private equity investment (45%).

However, there are still investors requiring additional support from financial providers and advisors, especially in a third-party product like the mutual fund investment against direct investment.

The study also outlines that the greater the people’s knowledge in investment, the more likely they are interested in the investment of private assets.

Schroders’ investment propositions director Stuart Podmore said the 2022 study encompasses societal and governance risks that are starting to top the list of priorities for investors.

“The study demonstrates the increase of investors’ experience of all levels in expressing views should companies be unable to justify actions. The pandemic has taught us that companies, as well as governments, are under closer scrutiny than ever to mitigate environmental, society and governance risks in a sustainable way.

“Increased investment knowledge appears to support people’s confidence in supporting corporate decision-making. As an active asset manager and guardian of our clients’ assets, we are committed to engaging in year-round dialogue on their behalf, to support better investment outcomes,” he said in a statement today.

Meanwhile, Schroders’ public policy head Sheila Nicoll said it is Schroders’ priority to support clients in finding the best investment solutions that meet their needs while ensuring they have all the right tools to make their decisions.

“This year’s results reinforce the increased need to support people in informing themselves about investment and engaging in their finances, which needs to be from earliest schooldays, throughout the education system, and during the course of changing circumstances in life,” she said.

On the same note, Schroders capital global head of private assets Georg Wunderlin said the company will continue to innovate in helping individual investors and private banks access the most attractive areas of private markets.

“Our private assets business is well placed to support the ‘democratisation’ of private assets.

“We are seeing increasing interest from individual investors to build a holistic portfolio comprising private and public investments, as evidenced by our Global Investor Study.

“Our teams can offer private investors access to this world through a range of specialist private asset vehicles and blended solutions which encompass both private and public assets, next to diversification benefits, blended portfolios allow individual investors to overcome the illiquidity barrier which has prevented them from investing in private markets at larger scale,” he said.