BOV Asset Management’s latest Investor Sentiment Index published

The latest BOV Asset Management Investor Sentiment Index shows that investors have responded differently to the latest developments brought about by COVID-19, the US Presidency and the Brexit movement. The current index reading now stands at 89.60, whilst the future sentiment index has reached 85.83, both indices showing significant declines since the last reading.

During a virtual breakfast meeting, Joseph Camilleri, Executive Head at BOV Asset Management said, “Now in its 5th wave, the Investor Sentiment Index serves as an informative tool for investors to make more informed decisions.” He continued to explain that such research projects enable entities to understand more of the local investor, address market gaps and seek innovative ways to gauge investor sentiment.

Conducted by MISCO International, the annual index is carried out through telephone interviews among local investors. The latest reading was the outcome of a sample of 602 respondents, of which 52% were male and 48% were female. It was also noted that 38% of these investors are within the 18-34 age group, indicating an increase in young investors.

A closer look at the Maltese investor’s profile as projected through these surveys shows that the Maltese investor continues to have a consistent preference for local investment while taking a more balanced approach to their risk profile. At the same time, a substantial amount of 31% stated that they have a mixed investment strategy of both local and foreign investments.

“Since the last reading, most investors retained a risk-averse approach, but they are still seeking to attain both income and growth from their commitments,” stated Mark Vella, Head at BOV Asset Management. “Despite high levels of uncertainty and a lack of stability put on us by the pandemic, the importance of growth and ambition is still an integral part of the current investment profile.”

The latest results show that investments in government stocks suffered a rapid decline of 11% since the last reading, whereas more investors moved towards funds, investment grade bonds and high yield bonds. Moreover, there was an increase of 16% in personal pension plans and a decrease of 6% in local corporate bonds since Wave 4. 43% of these investors have been investing for more than 10 years.

When asked about their preferred investment channel, the vast majority (64%) of Maltese investors continue to choose banks, but still showing a downfall when compared to the 75% from the last reading. Various types of financial intermediaries were mentioned by 28%, whereas 16% of investors invest online or on their own, an increase by 8% since Wave 4. A majority of close to 40% consider property and government stocks as the best investment options.

Mr Vella remarked that although the future index is expected to decrease due to the challenges posed by COVID-19, some positive aspects can be taken from the latest Investor Sentiment Index. “The Maltese Investor is evolving and becoming more prudent, as 34% of these respondents hold a monthly investment programme” said Vella. “It will be interesting to see how the local investor develops in a post-pandemic scenario, where the new normal and the impact of generational change could derive drastically different investment portfolios.”

BOV Asset Management Limited is licensed to provide Investment Services in Malta by the MFSA. Issued by BOV Asset Management Limited, 58, Zachary Street, Valletta, VLT 1130, Malta. Source: BOV Asset Management Limited. The Company obtained the information contained in this document from sources it believes to be reliable but have not independently verified the information contained herein and therefore its accuracy cannot be guaranteed. The Company make no guarantees, representations or warranties and accepts no responsibility or liability as to the accuracy or completeness of the information contained in this document. It has no obligation to update, modify or amend this article or to otherwise notify a reader thereof in the event that any matter stated therein, or any opinion, projection, forecast or estimate set for the herein changes or subsequently becomes inaccurate.

'Credit & Financial Institutions' Related News Articles

01
NATURE TRUST AND BANK OF VALLETTA UNVEIL ‘WHAT IS THAT ANIMAL?’ – MALTA’S FIRST LOCAL FAUNA FIELD GUIDE
Bank of Valletta

by Bank of Valletta

2nd June 2024

The European Union Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups Regulations 2024
CSB Group

by CSB Group

5th April 2024

Bank of Valletta has supported this year’s opera by Gioachino Rossini – ‘Armida’
Bank of Valletta

by Bank of Valletta

18th March 2024

Changing the terms of a credit agreement and forbearance policies and measures: new obligations on lenders in consumer and residential property credit agreements
Ganado Advocates

by Ganado Advocates

23rd February 2024

The HSBC Malta Foundation supports Three-Year UM Research Project through RIDT
HSBC Bank Malta p.l.c.

by HSBC Bank Malta p.l.c.

19th February 2024

BOV RETROSPECTIVE EXHIBITION FEATURING WORKS BY NOEL GALEA BASON OFFICIALLY INAUGURATED
Bank of Valletta

by Bank of Valletta

17th January 2024

Goal-line Defenders: Scoring Victory Against Financial Crime with the Three Lines of AML/CFT Defence
CSB Group

by CSB Group

12th January 2024

Agreement reached on the establishment of the Anti-Money Laundering Authority (“AMLA”)
Ganado Advocates

by Ganado Advocates

3rd January 2024

FIAU Thematic Review on Company Service Providers when providing Company Formation Services
Ganado Advocates

by Ganado Advocates

3rd January 2024

Directive 93/13/EEC and mandatory statutory or regulatory provisions in consumer contracts
Ganado Advocates

by Ganado Advocates

3rd January 2024

MiCA Update: Consultation Process on the Proposed Updates to Chapter 3 of the VFA Rulebook
Ganado Advocates

by Ganado Advocates

1st November 2023

Continuing to disclose the topic EU funding for Startups ¦ Startup Definition
Griffiths + Associates Ltd

by Griffiths + Associates Ltd

31st October 2023