Year on Year Decline in Investor Regrets Despite Market Uncertainty
The proportion of affluent European investors that express regrets over their investment strategy has fallen in the last 12 months (from 63% to 55%) despite mounting economic uncertainty, according to new research from Schroders.
The findings are from the Schroders European Wealth Index, an annual study that tracks the investment behaviour of 1,341 affluent investors across 12 countries. The latest findings suggest that investors are reacting to market challenges by taking more pro-active steps to grow their investments. This level of active engagement correlates with a fall in the proportion of investors that express investment regrets compared to June 2011.
When asked what their investment regrets had been over the last year, the top five responses comprised:
- Wishing they had invested more to date 35%
- Wishing they had sought more professional advice on investments 22%
- Not keeping a closer eye on the performance of investments 20%
- Wishing they had done more research 20%
- Not having followed a more balanced investment strategy 15%
When asked about the investment strategy they are adopting, findings in June 2011 pointed towards many investors being at a crossroads. However, there is evidence this year of investors taking greater advantage of the opportunities created by market conditions. The most popular investment strategies included:
- Buying property 33%
- Investing in products that provide a regular income 21%
- Getting financial advice to review my investment strategy 16%
- Putting cash into savings accounts 16%
- Investing in products that provide a return in all market conditions 14%
- Looking at investing further afield (e.g. Asia or Emerging Markets) 12%
- Converting cash into investments to achieve above inflation growth 12%
Specific country highlights
Cash contradiction? Investors in Belgium (27%), Germany (16%) and Austria (16%) were more likely to say now was the right time to put cash into investments (to achieve above inflation growth) rather than put money into cash savings or deposit accounts. Investors in France (21%), Israel (20%), Spain (18%) and Portugal (18%) and Italy (17%) were more likely to favour putting money into savings and deposits.
Investment Strategies: Spanish (19%) and UK (15%) investors were most likely to say now was the time to look further afield for investment opportunities in Asia and emerging markets. The Swedes were most likely to favour investing in a multi-asset fund that was diversified across asset classes (17%) while Israelis were most likely to opt for absolute return products (21%) and the Belgians (42%) and Swiss (41%) were most likely to believe now was the right time to invest in property.
Peter Beckett, Head of International Marketing at Schroders, commented: “Markets remain challenging but affluent investors’ investment outlook has improved compared to 12 months ago. Not only has there been a relative decline in the proportion of investors with investment regrets, but investors are also looking to take more pro-active steps with their investment strategy despite the uncertain outlook. This also coincides with the increase in investors seeking financial advice to help achieve their investment goals.”
For further information please contact:
Georgina Robertson, Schroders
email@example.com (0207 658 6168)
Notes to Editors
Additional tables are available upon request. The research was undertaken by YouGov in April 2012 among a representative sample of 1,341 affluent investors spanning 12 European countries. These included Germany, Austria, Sweden, Switzerland, Spain, Netherlands, Belgium, Italy, France, Portugal, Israel and the UK. The affluent investor sample was defined as people with invested assets, excluding primary residence, of €60,000 (or the equivalent amount). The 2011 research was conducted in June 2011.
Schroders is a global asset management company with £199.6 billion (€238.9billion, $310.1 billion) under management as at 31 March, 2012. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 33 offices in 26 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Services Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service