Global Investor Study 2019

Are you in control of your finances?

From pensions to savings, every investment brings risk and potential reward. So, it goes without saying that people want to feel in control of their personal finances. But are people really taking the best approach when it comes to handling their investments?

We spoke to over 25,000 people, from 32 countries around the world, to explore their behaviours around investing. Could behavioural biases be impacting how you manage your investments?

Less than half of people are very confident with exactly how much money they have across providers

0%

of people are very confident with how much money they have across various financial providers

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Those who describe their investment knowledge as expert, or advanced, are much more likely to be very confident with how much money they have

0%
Expert / Advanced
0%
Intermediate
0%
Beginner / Rudimentary

People are generally active when it comes to their personal finances

0%

of people check their investments at least monthly

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But they might be considered too active; holding investments for less than the five years that professional guidance generally recommends. They are also making reactive decisions

How long it’s generally recommended you should remain invested in a product

The average length of time that people stay invested with products before moving elsewhere or cashing it in

5years
2.6years

How people responded to a period of market volatility

0%

of people stuck with their initial investment plan

0%

of people made changes to their investment portfolio’s risk profile

And it would appear that people’s activity is not paying off, with over half of them dissatisfied with their investments

0%

of people have not achieved what they wanted with their investments over the past five years

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People often blamed themselves for this dissatisfaction

I should have remained invested for longer
I should have taken my money out sooner
I didn’t take enough risk
I took too much risk
I made the wrong assessment of what I needed
I acted on bad advice from someone else
I acted on bad advice from my financial adviser
I ignored the advice I was given by my financial adviser

A lack of satisfaction is further increased by rising income and return expectations

The annual total return (i.e. income and capital growth) people expect to make, each year, from their total investment portfolio over the next five years

2018

2019

And what people want is not much different to what they realistically expect

0%

is the minimum level of income people would like to receive

0%

is the level of income people expect to receive over the next 12 months

Often, people lean towards investing in markets that are familiar to them

People that prefer funds that invest in their home country

People that prefer funds that invest in countries familiar to them

People that think that emerging markets are too risky

Schroders is a world-class asset manager operating from 32 countries across Europe, the Americas, Asia, the Middle East and Africa.


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*Schroder International Selection Fund will be referred to as Schroder ISF throughout this website

Important Information

Collective investment schemes are generally medium to long-term investments.

The value of participatory interests or the investment may go down as well as up.

Past performance is not necessarily a guide to future performance.

Collective investment schemes are traded at ruling prices and can engage in borrowing and scrip lending.

A schedule of fees and charges and maximum commissions is available on request from the manager

The manager does not provide any guarantee either with respect to the capital or the return of a portfolio

The performance is calculated for the portfolio. The individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestment and dividend withholding tax. All fund performance data are on a NAV to NAV basis, net income reinvested and net of ongoing charges and transaction costs. Data is not available for the time periods with no % growth stated. In case a share class is created after the fund's launch date, a simulated past performance is used, based upon the performance of an existing share class within the fund, taking into account the difference in the ongoing charges and the portfolio transaction costs, and including the impact of any performance fees if applicable.

Annualised return is the weighted average compound growth rate over the period measured.