GLOBAL MARKET SENTIMENT SURVEY 2013

GLOBAL MARKET SENTIMENTSURVEY 2013January 2013

CFA Institute 2

AVOIDING THE FISCAL CLIFF

CFA Institute

RESPONDENT PROFILE

USA 3042CANADA 839UK 309SWITZERLAND 205HONG KONG 192CHINA 175GERMANY 174AUSTRALIA 135INDIA 115SOUTH AFRICA 107SINGAPORE 98JAPAN 72BRAZIL 64FRANCE 64KOREA 55ITALY 53RUSSIA 53UAE 50AUSTRIA 46NETHERLANDS 45TAIWAN 42SPAIN 38

TOP COUNTRIES

60%AMER

24%EMEA

16%APAC

3

CFA Institute 4Global Market Sentiment Survey 2013

“Not Sure” option not displayed

GLOBAL AMER APAC EMEA GLOBAL AMER APAC EMEA GLOBAL AMER APAC EMEAExpand Stay roughly the same Contract

40%39%

32%

50%

38% 38%

41%

35%

20%22%

24%

14%

34%36%

25%

38%

34% 35%

30%

34%

29%27%

42%

27%

2013 2012

IN 2013, DO YOU EXPECT THE GLOBAL ECONOMY TO:


Europ

ean s

over

eign d

ebt c

risis

Wea

k eco

nomic

cond

itions

Politic

al ins

tabilit

y

System

ic dis

rupti

ons

Exces

s reg

ulatio

n

Wea

k reg

ulatio

nOthe

r

37%

31%

12%10%

5%

1%4%

38%

30%

14%

9%

4%

1%

4%

36% 35%

9%11%

5%

1%3%

35%33%

10% 10%

6%

1%4%

Global AMER APAC EMEA

"No opinion” option excluded from results.

WHAT DO YOU SEE AS THE BIGGEST RISK TO GLOBAL CAPITAL MARKETS IN 2013?


“Not Sure” option not displayed

GLOBAL AMER APAC EMEA GLOBAL AMER APAC EMEA GLOBAL AMER APAC EMEAExpand Stay roughly the same Contract

45%

49%46%

33%

38% 37%36%

42%

16%

13%

16%

24%

42%

46% 47%

24%

40% 41%

31%

44%

17%

12%

21%

30%

2013 2012

IN 2013, DO YOU EXPECT YOUR LOCAL ECONOMY TO:


Equities Precious metals Commodities Bonds Cash

41%

25%

15%

10% 9%

50%

22%

16%

8%

4%

2012 2013

*Chart displaying proportion of members ranking the asset class as likely to have the highest expected return.

RANK THE FOLLOWING ASSET CLASSES IN ORDER OF EXPECTED TOTAL RETURN IN THE GLOBAL MARKETS IN 2013*


United

Stat

esChin

aBraz

il

Canad

aInd

iaOthe

r

German

y

Mexico

Russia

Hong K

ong

Austra

liaSpa

in

Singap

ore

South

Korea

Japa

nIta

ly

South

Africa

Switzerl

and

United

King

dom

Chile

Qatar

Saudi

Arabia

Kuwait

32%

17%

10%

4% 4% 5%3% 3% 3% 3% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 0%

Global

WHICH THREE EQUITY MARKETS DO YOU THINK WILL PROVIDE THE BEST INVESTMENT OPPORTUNITY IN 2013? 1 (best opportunity)*


WHICH OF THE FOLLOWING INVESTMENT VEHICLES DO YOU THINK YOU WILL USE THE MOST IN 2013?

Individual stocks and

bonds

ETFs Mutual funds Index funds Private equity funds

Hedge funds Structured products

Other

38%

24%

16%

9%

4% 3% 3% 3%

36%

26%

18%

9%

3% 3%2%

3%

43%

18%

10% 9%

5% 5% 5%3%

41%

21%

15%

7%

5%3% 4% 4%



Increase Decrease Stay about the same

14%

35%

51%

17%

33%

49%

2012 2013

"Not Sure” option excluded.

IN 2013, DO YOU EXPECT EMPLOYMENT OPPORTUNITIES FOR INVESTMENT PROFESSIONALS IN YOUR LOCAL MARKET TO INCREASE, DECREASE, OR STAY ABOUT THE SAME?


Lack

of et

hical

cultu

re w

ithin

finan

cial fi

rms

Poor g

over

nmen

t reg

ulatio

n and

enfor

cemen

t

Marke

t disr

uptio

ns (f

ailed

IPOs,

flash

cras

h etc.

)

I don

’t thin

k the

re is

lack

of tr

ust in

the f

inanc

e ind

ustry

.Othe

r

56%

16% 16%

2%9%

53%

19%15%

2%

12%

59%

16% 19%

2% 4%

63%

10%18%

1%8%


“No opinion” option excluded from results.

WHICH FACTOR DO YOU THINK HAS CONTRIBUTED THE MOST TO THE CURRENT LACK OF TRUST IN THE FINANCE INDUSTRY?


24%21% 19%

16% 16%

4%

22%

9%

38%

13% 14%

3%

31%

9%

23%

14%18%

4%

2013 2012 2011

WHICH ONE OF THE FOLLOWING REGULATORY OR INDUSTRY ACTIONS IS MOST NEEDED IN THE COMING YEAR (2013) TO HELP IMPROVE INVESTOR TRUST AND MARKET INTEGRITY?


Mis-se

lling b

y fina

ncial

advis

ers

Marke

t frau

d

Integ

rity of

finan

cial re

portin

g

Marke

t trad

ing pr

actic

es

Disclos

ure/u

se of

finan

cial d

eriva

tives

Inves

tmen

t man

agem

ent s

ervic

es/st

ructu

re

29%

19%

15%14%

12% 11%13%

22%

16%18%

16% 15%

26%

20%

15%13%

16%

10%

2013 2012 2011

*Chart displaying proportion of members ranking most serious ethical issues facing local markets.

PLEASE RANK THE FOLLOWING ETHICAL ISSUES FACING YOUR LOCAL MARKET IN THE COMING YEAR IN ORDER OF THE MOST SERIOUS (1) TO THE LEAST SERIOUS (6)*


ABOUT THIS SURVEY

The CFA Institute Global Market Sentiment Survey was created to seek input from CFA Institute members and gather feedback on market sentiment, performance, and market integrity issues in 2013, and to further our mission of promoting ethical and trustworthy investment markets.

METHODOLOGY

An online survey was conducted from 30 October to 13 November 2012. All CFA Institute members globally (over 115,000) were invited to participate in the survey; 6,783 responded, for an overall response rate of 6% and a margin of error of ±1.2%. In addition to analysis and reporting at the global, regional, and advanced vs. developing economies level, 22 countries are also included in this report. To view survey questionnaire please click here.


ABOUT CFA INSTITUTE

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors’ interests come first, markets function at their best, and economies grow. CFA Institute has more than 110,000 members in 138 countries and territories, including over 103,000 CFA charterholders, and 138 member societies. For more information, visit www.cfainstitute.org.

QUESTIONS?Media inquiries:J.D. McCartneyDirector, Public Relations, The [email protected]

Survey inquiries:Melissa LooneyDirector, Market [email protected]

To view and download full report, please visit http://www.cfainstitute.org/about/research/surveys/Pages/global_market_sentiment_survey_2013.aspx

http://www.cfainstitute.org/

mailto:[email protected]

mailto:[email protected]

http://www.cfainstitute.org/about/research/surveys/Pages/global_market_sentiment_survey_2013.aspx



Documents

GLOBAL MARKET SENTIMENT SURVEY 2013