“Investors face a complex reality, with inflation, the threat of recession and an uncertain global economy ranking as their top concerns,” said Paul Njoki, the head of wealth management at Stanchart’s local operation.
“Our research reveals that they are making changes to their portfolio allocations in response to these challenges, but it is important that they make decisions aligned with their objectives and the external environment.”
The cost of living rallied from a low of 4.66 per cent in April last year to peak at 7.48 per cent in October before easing marginally to 7.38 per cent last month.
Higher prices have been witnessed across diverse services and commodities including petroleum products, food and energy.
The jump in inflation has eroded households’ investable funds and eaten into real returns on portfolios after adjusting for the cost of living.
Research for the Wealth Expectancy Report 2022 was carried out online across 14 markets –Mainland China, India, Pakistan, UAE, Vietnam, Hong Kong, Kenya, Nigeria, Indonesia, Taiwan, Malaysia, Thailand, Singapore and South Korea.
The study was conducted between September 26 and October 18, covering 15,206 respondents.
It included high-net-worth individuals, described as those with invested assets of $1 million (Sh122.9 million) or more.
The survey found that 53 per cent of Kenyans are saving for their children’s education while 51 per cent aim to keep up with the rising cost of living.
Half of the local respondents meanwhile are saving for retirement.
Returns on fixed-income assets like government bonds have risen significantly in recent months amid uncertainty over how long the high inflation will last.
Other major assets like real estate, listed equities and cryptocurrencies on the other hand face greater uncertainty from oversupply, foreign investor exits and widespread fraud respectively.
