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2014 LEGG MASON
TRENDING NOW:
KEY THEMES
SHORT-TERM CONFIDENCE, LONG-TERM CONCERN
World investors exhibit guarded optimism about the present but express doubt
about the future environment.
FOCUS ON WEALTH-BUILDING
Growing wealth is a top focus of global investors, evidenced by broad interest
in holding more equities and non-traditional investments
NEXT-GENERATION ADVICE: PLAN AHEAD
Planning is a virtue, both for investors now and in the advice they want to give
the next generation.
INCOME STILL A CHALLENGE
Satisfaction with income investments remains modest — and the “gap” between
actual and hoped-for return on income investments widened for world investors.
ALTERNATIVES: ON A LEARNING CURVE
Interest in alternatives and non-traditional strategies outpaces allocations;
lack of understanding remains an obstacle.
INVESTING ABROAD: THE REALITY OF HOME BIAS
Willingness to invest abroad varies greatly by market, but those who don’t do so
say they are unlikely to consider it.
HIGH MARKS FOR FINANCIAL ADVISORS
World investors with advisors are largely positive in their assessment of their value,
and two-thirds of those who don’t have an advisor are interested in working with one.
1
2
3
4
5
6
7
To learn more, Legg Mason surveyed affluent investors in 20 major financial markets in the Americas,
Europe, Asia and Australia about current investments and future opportunities, focusing on those in the
prime of their financial lives (age 40-75).
We certainly saw variation from market to market based on local economic conditions and cultural
norms, particularly in attitudes about the future and the willingness to invest abroad. Yet the
portrait of the global investor that emerged is consistent in revealing a pragmatic approach to
investing in a world that has yet to fully absorb the legacy of the 2008 financial crisis.
Conservative at heart, but leaning toward risk
Global investors overall remain conservative in their risk tolerance; Chinese investors stood out
as most likely to identify their tolerance as somewhat or very aggressive (38%), with Belgian and
Brazilian investors the least likely (17%) followed closely by the French (18%).
Average allocation (% of portfolio)
Cash or cash equivalents
27
Equities
25
Fixed income
20
Investment real estate
17
Non-traditional investments*
7
Other
5
Overall risk tolerance
for investing (%)
1Very conservative
10
Somewhat conservative
55
Somewhat aggressive
34
Very aggressive
2
WHAT WORLD INVESTORS
ARE SAYING
When investors worldwide talk about money,
what dominates the conversation? Where do they
see opportunity, and where do they see peril?
How different are they from country to country?
* Defined in survey as Investments focused on non-traditional asset classes, including private equity, hedge funds, currencies and commodities and which may use tactics such as hedging, shorting and derivatives.
1 Does not sum to 100% because of rounding.
Overall, asset
allocations reflect
a conservative bias
Yet global investors appear to be embracing risk assets in the form of equities and non-traditional
investments in their plans and perceptions of opportunity for the immediate future. Equities led
the list of asset classes that investors planned to hold more of in the next 12 months, with domestic
stocks most likely to be identified as one of the top 3 investment opportunities for that period.
Top 3 best investment opportunities over next 12 months (%)
MOST LIKELY TO SEE
DOMESTIC STOCKS AS A
TOP 3 OPPORTUNITY (%)
74
69
Japan
US
LEAST LIKELY TO SEE
DOMESTIC STOCKS AS A
TOP 3 OPPORTUNITY (%)
25
25
Mexico
Italy
MOST LIKELY TO SEE
NON-TRADITIONAL
INVESTMENTS AS A TOP
3 OPPORTUNITY (%)
46
46
Colombia
Mexico
MOST LIKELY TO SEE
DOMESTIC BONDS AS A
TOP 3 OPPORTUNITY (%)
44
33
Japan
China
LEAST LIKELY TO SEE
DOMESTIC BONDS AS A
TOP 3 OPPORTUNITY (%)
15
16
Taiwan
Colombia
LEAST LIKELY TO SEE
NON-TRADITIONAL
INVESTMENTS AS A TOP
3 OPPORTUNITY (%)
13
14
Germany
Switzerland
Equities
Cash or cash equivalents
Fixed Income
Investment real estate
Non-traditional investments
37
37
33
27
26
Domestic stocks
Real estate
Cash
Gold or other precious metals
Domestic bonds
International stocks
Non-traditional investments
International bonds
59
42
39
38
38
32
30
22
Overall, world investors express guarded optimism about
their immediate prospects (rated on average 6.8 on a
scale of 1 to 10). They also expressed a fairly high level of
confidence in their ability to achieve their financial goals
(75% very/somewhat confident) and to make successful
decisions in today’s environment (70%). But that said, the
proportion who were very confident in either outcome was
low (22% and 12% respectively).
6.8
OPTIMISM ABOUT INVESTMENTS IN NEXT YEAR: (NEXT YEAR: AVG) (ON A SCALE OF 1 TO 10, WITH 10 AS MOST OPTIMISTIC)
Most optimistic US 7.2 Colombia 7.2 China 7.0 Least optimistic Japan 5.5 France 5.7 Taiwan 5.7
Confidence in ability to achieve my financial goals (%)
Very confident 22
Somewhat confident 54
Not at all/not very confident 25
Confidence in ability to make successful financial decisions in today’s market environment (%)
Very confident 12
Somewhat confident 58
Not at all/not very confident 30
But looking farther into the future, investor expectations
were less positive. Nearly half (46%) believe the environment
for investing will be more difficult for the next generation.
Italian and French investors were among the most likely
to take a pessimistic view (80% and 78% respectively),
reflecting current economic challenges. Among the largest
economies, 70% of US investors felt things would be more
difficult later and only 6% that they would be easier. In
contrast, only 34% of Chinese investors predicted things
would be more difficult, and 41% that they would be easier,
by far the highest in any market surveyed.
Type of investment environment future generation will face (%)
More difficult 46
About the same 25
Easier 29
1
SHORT-TERM CONFIDENCE,
LONG-TERM CONCERN
31
%
SAID THEY ARE
SOMEWHAT OR VERY
CONFIDENT IN ABILITY
TO MANAGE THEIR
INVESTMENTS —
THE HIGHEST OF ALL
MARKETS SURVEYED
88
%
GERMANY ITALYOF PORTFOLIOS
ALLOCATED TO FIXED
INCOME
— THE
HIGHEST OF EUROPEAN
MARKETS SURVEYED
Wealth accumulation was the top ranked goal among those
surveyed. Asked to identify their three primary goals of
investing, almost three-quarters (74%) selected “grow my
wealth” — outpacing more defensive goals such as “providing
for my own retirement” (62%), “protect my wealth” (59%),
and “maintain my current lifestyle later in life” (57%).
Primary goals of investing (%)
Grow my wealth 74
Providing for my own retirement 62
Protect my wealth 59
Maintain my current lifestyle later in life 57
The tilt toward equities evident in attitudes about allocation
in the next 12 months may in part reflect perceptions about
their ability to outpace inflation, which was ranked as the
top issue that could derail progress (49%).
Concerns that could derail investment progress (%)
Inflation 49
Making the wrong investment decisions 37
Low economic growth in my country 33
Increasing market volatility 32
“Make a plan and stand by it“ was the most popular advice
(62%) for future generations among world investors — not
surprising given that “developed a financial plan” ranked
#1 as the decision that had the most positive impact on
investors’ success over the past two years (48%). Overall,
their advice leaned toward caution: twice as many
respondents picked “be cautious about risks” as “don’t
be afraid to take risks”, which ranked dead last.
Investment advice for future generations (%)
Make a plan and stand by it over time 62
Make sure you understand what you invest in 61
Start investing early in life 55
Avoid short-term decisions based on emotion 54
Be cautious about taking risk 44
Don’t make the mistakes that I have made 32
Employ a professional financial advisor 31
Don’t be afraid to take risks 23
Decision with most positive impact on investing success in past 2 years (%)
Developed a financial plan 48
Invested in products other than just stocks and bonds 42
Took cash off the sidelines and invested it 40
Changed my spending habits so I could save/invest more 36
3
NEXT-GENERATION ADVICE:
PLAN AHEAD
2
FOCUS ON WEALTH
ACCUMULATION
56
%
SAY
DOMESTIC
STOCKS OFFER THE
BEST OPPORTUNITIES
IN
NEXT 12 MONTHS — THE
HIGHEST OF EUROPEAN
MARKETS SURVEYED
UNITED KINGDOM CHINA
38
%
LABELED THEIR
INVESTMENT RISK
TOLERANCE “AGGRESSIVE”
— THE HIGHEST OF ANY
MARKET SURVEYED
5
ALTERNATIVES: ON A
LEARNING CURVE
FRANCE70
%
WOULD ADVISE
FUTURE GENERATIONS
TO START INVESTING
EARLY IN LIFE
2 A basis point is equivalent as 1/100th of 1%. 330 basis points represents a difference of 3.3 percentage points.
3 Defined in survey as investments focused on non-traditional asset classes, including private equity, hedge funds,
currencies and commodities and which may use tactics such as hedging, shorting and derivatives.
† On a scale of 1-10, with 10 as most optimistic.
5.5
JAPANRATING FOR
OPTIMISM
ABOUT
NEXT 12 MONTHS
†— THE LOWEST OF ANY
MARKET SURVEYED
4
INCOME STILL
A CHALLENGE
Income is still on investors’ radar: roughly the same
percentage of world investors ranked income as important
or extremely important (71%) as they did in Legg Mason’s
Income Survey last year (69%). Satisfaction with income
producing investments remains modest: only 9% are very
satisfied, although 59% are somewhat satisfied.
Priority of income generating investments (%)
Extremely important 22
Important 49
Somewhat important 23
Not important 6
However, the “income gap” between actual and hoped-for
return on income investments widened for world investors
between this year’s and last year’s surveys — moving
from 280 basis points
2last year to 330 basis points this
year. Some markets did do better; the US income gap
actually shrank vs. last year. For the most part, the gap was
driven by investor expectations about return on income
investments; expectations varied far more than the actual
returns reported by investors.
Global income expectations gap: 330 basis points
Smallest gap: United Kingdom 150 basis points
Largest gap: Chile 520 basis points
Alternative/non-traditional investments
3command great
interest, with nearly half (48%) saying they were very or
extremely interested in learning more about them. Those
who are interested say they would be willing to invest up
to 29% of their portfolio in these assets.
Interest in learning about non-traditional investments (%)
Extremely interested 15
Very interested 33
Somewhat interested 32
Not at all/not very interested 20
However, on a global basis, non-traditional strategies
represent only 7% of portfolio allocations, and only a
quarter say they plan to increase the proportion of these
assets in their portfolio over the next 12 months. There is
clearly an opportunity for financial firms and professionals
to provide more education about these strategies: a lack
of understanding was the most cited concern about
non-traditional investments (53%).
Concerns about non-traditional investments (%)
Lack of understanding of the product 53
Volatility 50
Lack of transparency 49
Higher fees 37
Lack of liquidity 30
7
HIGH MARKS FOR FAs
6
INVESTING ABROAD: THE
REALITY OF HOME BIAS
Home bias is a long-entrenched phenomenon among global
investors; there is a well-established tendency for human
beings to lean toward the familiar rather than the exotic,
even when the familiar is not entirely satisfying.
And indeed, while 79% of investors surveyed do hold some
investments abroad and 3/4 say international opportunities
are more of a focus than they were 5 years ago, on average
only 17% of their investments are held outside their home
country. Among those who do not invest internationally,
few appear ready to change: only 22% say they are likely
to consider it.
Focus on international opportunities compared to 5 years ago
(Base: Invest internationally)
Much more of a focus 28
Somewhat more of a focus 47
No change compared to five years ago 20
Somewhat less of a focus 4
Much less of a focus 1
Many factors impact the willingness of investors to send
money abroad. In smaller countries or those with less
developed financial infrastructures, a paucity of opportunities
at home may nudge investors toward going abroad.
Top reasons to invest abroad:Potential for higher returns (62%) and diversification (55%)
Top reasons not to do so: Global uncertainty (59%) and lack of familiarity with opportunities (45%)
Those who invest internationally see the following countries
as presenting the best investment opportunities over the
next 12 months, with the US and China topping the list.
Markets representing best investing opportunities over next 12 months (Base: invest internationally or would consider doing so)
United States 52
China 50
Emerging markets 45
Europe (Excluding UK) 35
Brazil 25 India 22 Japan 21
United Kingdom 19
Russia 19
Latin America (Excluding Mexico) 12
Financial advisors in general earned high marks from
clients, and a significant proportion of those who do not
use one would like to do so. Investors who use an advisor
also showed higher levels of confidence in their ability to
retire and meet their goals than those who did not. The
top cited benefits of using an advisor speak to the desire
for wealth accumulation: #1, the opportunity for better
performance (45%) and access to opportunities investors
could not get on their own (42%).
% who strongly agree that their financial advisor (Base: use an advisor)
Is available and responsive 48
Is knowledgeable about investing and current market trends 45
Takes the time to understand my financial situation and goals 44
Provides advice tailored to my specific investment needs 40
Instills confidence that he/she will help me to achieve financial success 40
Has my best interests at heart 40
Top benefits received from financial advisor (Base: Use an advisor)
Opportunity for better investment performance 45
Access to investment opportunities I would not get on my own 42
Help me understand the various investments in my portfolio 40
Avoid costly mistakes I might make on my own 39
Create a formal financial plan to achieve my goals 34
Overall, 55% of US respondents use an FA, vs. 38% globally.
But the interest is there among non-US investors: 66% who
don’t have an FA say they are extremely or very interested
in working with one, vs. 26% for US investors.
Interest in working with a financial advisor (Base: do not use an advisor)
Extremely/very interested 66
Market-by-market highlights
US
55
%
use a financial advisor — second only to Hong Kong (56%)
UK
56
%
say domestic stocks offer the best opportunities in next 12 months —
the highest of European markets surveyed
Italy
31
%
of portfolios allocated to fixed income — the highest of all European
markets surveyed
Switzerland
49
%
are concerned about currency risk when investing internationally — the
highest of European markets surveyed
Sweden
24
%
shifted investments from emerging markets to developed markets in past
year — the highest of European markets surveyed
Germany
88
%
said they are somewhat or very confident in ability to manage their
investments — the highest of all markets surveyed
Spain
53
%
see an increasing tax burden as a key issue that could derail progress —
the highest in European markets surveyed
Belgium
23
%
of investments are outside home country — the 2nd highest in European
markets surveyed (tie with Sweden)
France
70
%
would advise future generations to start investing early in life
China
38
%
labeled their investment risk tolerance “aggressive” — the highest of any
market surveyed
Hong Kong
92
%
hold investments outside of home country — the highest of Asian
markets surveyed
Japan
5.5
rating for optimism about next 12 months
†— the lowest of any market
surveyed
Singapore
61
%
see global uncertainty as a major barrier to investing internationally
South Korea
32
%
the portfolio allocation that those interested in non-traditional investments
would be willing to invest in these assets in next year
Taiwan
79
%
said “providing for my own retirement” was a primary goal of investing —
the highest in Asian markets surveyed
Australia
61
%
were not interested in learning about non-traditional investments — the
highest of any market surveyed
Brazil
60
%
chose “inflation” as something they fear could derail their progress —
the highest of all markets surveyed
Chile
10
%
of assets held outside home country — the lowest of all markets
surveyed
Mexico
52
%
said gold/precious metals offer best opportunity in next 12 months —
the highest of all markets surveyed
Colombia
53
%
selected “don’t make the same mistakes I have made” as advice for
future generations — the highest of all markets surveyed
† On a 1-10 scale, with 10 as most optimistic
SURVEY
METHODOLOGY
Respondents had to meet the following screening criteria:
Sole or joint decision-maker for household investment decisions
$200,000+ investable assets (includes investment real estate but not primary residence/vacation property)
Age 40-75
Field work for the survey was conducted between December 10, 2013 and January 10, 2014. In each
market, samples included roughly equal numbers of respondents for the $200K-$999K group and
$1MM+ group; the data was then weighted to be representative of the $200K-$999K and $1MM+
household total investable assets populations. Additional sampling and weighting factors were applied
to the US, UK, Singapore and Australia data to align age distribution of respondents with that of
relevant populations. Global investor figures are composites based on weighted average of
country-specific findings, weighted by relative incidence of qualified investors in each country.
The research was conducted by Northstar Research Partners, an independent global marketing research
firm with offices in New York, Toronto and London (www.northstarhub.com). Northstar conducts research
across a wide range of industry sectors and is a recognized leader in financial services marketing research.
IMPORTANT INFORMATION
All investments involve risk, including loss of principal. Neither diversification nor asset allocation
can assure a profit or protect against market loss.
Equity securities are subject to price fluctuation and possible loss of principal. Fixed-income securities
involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. As interest
rates rise, the value of fixed income securities falls. Commodities contain heightened risk that include
market, political, regulatory, and natural conditions and may not be suitable for all investors. Most
alternative investment assets are held by institutional investors or accredited, high-net-worth individuals
because of their complex nature, limited regulations and relative lack of liquidity. Alternative investments
include hedge funds, managed futures, real estate, commodities and derivatives contracts. Foreign
securities are subject to the additional risks of fluctuations in foreign exchange rates, changes in political
and economic conditions, foreign taxation, and differences in auditing and financial standards. These
risks are magnified in the case of investment in emerging markets.
A quantitative online survey methodology was used to
conduct the survey, with a total of 4,320 investors across
20 markets completing the survey questionnaire.
Market
Sample size
United States
Total: 500
Europe (UK, France, Spain, Italy, Germany,
Switzerland, Belgium, Sweden)
Total: 1,602 (200-201 per market)
Asia (China, Hong Kong, Singapore, Japan,
Taiwan, South Korea)
Total: 1,212 (200-207 per market)
Latin America (Brazil, Chile, Mexico, Colombia)
Total: 805 (201-202 per market)
APPENDIX:
DATA BY MARKET
Gl ob al US UK Fran ce Sp ai n Ita ly Ge rm any Sw itz er la nd Be lg iu m Sw ed en Br az il Ch ile Me xi co Col om bi a Hon g K on g Si ng apo re Jap an Ta iw an Chin a So uth K or ea Au st ra lia Allocation decisionsAverage allocation of assets (% of portfolio)
Cash or cash equivalents 27 22 32 25 19 21 29 34 35 25 40 32 30 31 23 30 49 32 24 26 25
Equities 25 41 31 20 22 17 19 17 19 29 10 15 14 11 24 25 25 25 21 23 26
Fixed Income 20 21 15 19 23 31 18 23 22 14 14 18 18 14 16 16 9 12 22 14 10
Investment real estate 17 6 12 23 21 21 24 15 14 12 20 15 23 23 20 15 7 21 20 25 27
Non-traditional investments†† 7 4 5 6 8 5 3 4 3 6 6 7 8 11 12 8 4 6 8 8 2
Other 5 7 7 8 7 6 8 8 7 15 9 13 9 11 5 6 6 6 5 4 11
% plan to increase allocation in next 12 months to...
Equities 37 25 38 25 42 26 34 36 38 30 48 37 40 41 56 42 35 31 41 38 32
Cash or cash equivalents 37 25 25 24 32 23 25 33 28 27 62 53 58 59 48 38 33 32 40 41 37
Fixed Income 33 17 18 19 29 30 20 25 33 21 47 39 41 46 49 28 21 28 39 35 25
Investment real estate 27 12 19 16 25 19 21 20 31 14 58 43 41 60 46 32 18 29 29 27 29
Non-traditional investments 26 13 19 16 27 22 19 18 19 16 38 28 40 49 48 32 21 18 32 28 12
% plan to keep same allocation in next 12 months to…
Non-traditional investments 63 81 76 64 65 60 68 74 67 71 46 48 49 40 45 55 64 66 58 52 83
Investment real estate 62 83 73 72 61 63 73 73 60 71 33 46 50 31 44 59 70 55 58 54 64
Fixed Income 60 77 75 68 52 55 64 71 58 70 41 49 48 45 45 61 64 61 57 54 70
Cash or cash equivalents 52 66 53 55 44 60 61 54 49 59 29 41 31 30 39 51 59 56 48 51 51
Equities 50 68 54 55 48 51 53 57 51 63 36 46 52 49 35 48 50 50 46 40 66
% plan to decrease allocation in next 12 months to...
Equities 13 6 8 20 9 22 13 7 11 8 16 17 8 10 9 11 15 19 13 23 2
Investment real estate 12 5 9 12 14 17 7 7 8 15 9 11 9 9 10 8 12 16 12 19 7
Cash or cash equivalents 12 9 22 21 23 18 14 14 22 14 10 6 11 11 14 11 8 11 11 8 12
Non-traditional investments 11 5 5 20 8 18 13 8 13 14 17 25 10 10 7 14 14 15 11 20 5
Fixed Income 6 7 7 12 19 15 17 4 9 8 11 12 11 10 6 11 15 11 5 11 5
Top 3 best investment opportunities over next 12 months (%)
Domestic stocks 59 74 56 38 48 25 47 48 38 53 38 38 25 34 48 51 69 58 56 53 61
Real estate 42 38 60 68 46 50 64 69 71 61 83 84 71 82 46 49 33 60 40 48 71
Cash 39 28 28 22 42 24 35 41 26 22 44 31 38 30 46 40 57 51 37 61 37
Gold or other precious metals 38 33 37 41 38 37 47 44 39 37 42 41 52 44 28 39 35 25 40 35 36
Domestic bonds 38 31 25 20 32 29 24 29 26 18 28 24 23 15 30 21 33 16 44 26 17
International stocks 32 53 50 54 41 48 44 37 47 60 21 26 24 31 48 42 34 33 26 27 45
Non-traditional investments 30 23 28 33 26 32 14 13 23 28 29 42 46 46 25 38 23 17 31 30 21
International bonds 22 19 16 25 27 56 26 19 29 22 14 13 20 19 29 20 15 40 25 21 11
†† Defined in survey as investments focused on non-traditional asset classes, including private equity, hedge funds, currencies and commodities, which may use tactics such as hedging,
Gl ob al US UK Fran ce Sp ai n Ita ly Ge rm any Sw itz er la nd Be lg iu m Sw ed en Br az il Ch ile Me xi co Col om bi a Hon g K on g Si ng apo re Jap an Ta iw an Chin a So uth K or ea Au st ra lia Sentiment/confidence
Optimism about investments in next year (avg. on scale of 0-10, with 10 as most optimistic)
Average 6.8 7.2 6.8 5.7 6.3 6.1 6.4 6 5.8 6 6.8 6.2 6.9 7.2 6.7 6.4 5.5 5.7 7 6.3 6.5
Confidence in having enough money to live lifestyle desired in retirement
Very confident 28 28 37 16 21 9 35 26 22 16 50 17 23 37 13 16 12 20 33 12 24
Somewhat confident 57 59 49 52 58 57 50 53 53 60 36 44 54 45 70 64 41 59 58 58 47
Not at all/not very confident 15 12 15 32 21 34 15 21 25 24 14 38 23 18 17 21 47 21 9 30 29
Confidence in ability to make successful financial decisions in today's market environment
Very confident 12 12 18 4 19 14 15 14 6 4 25 18 18 26 8 8 7 9 14 4 10
Somewhat confident 58 63 56 48 54 50 64 61 50 53 52 49 56 54 60 56 38 42 61 56 58
Not at all/not very confident 30 25 27 48 27 36 22 25 45 42 23 33 26 20 31 36 56 49 25 40 32
Confidence in ability to achieve my financial goals
Very confident 22 24 27 10 22 19 22 17 7 10 41 25 29 39 12 10 8 11 25 9 20
Somewhat confident 54 61 56 50 54 53 65 65 56 51 46 46 52 44 59 63 44 52 53 50 51
Not at all/not very confident 25 15 18 40 24 28 14 18 37 39 13 29 19 17 29 27 48 37 22 41 29
Confidence in ability to retire at the desired age
Very confident 29 39 49 30 29 28 35 32 40 31 44 34 38 48 16 16 18 20 28 16 25
Somewhat confident 49 48 35 34 39 36 45 47 33 41 31 32 39 29 54 57 43 46 53 41 41
Not at all/not very confident 22 14 16 36 31 36 20 22 26 28 25 33 23 23 30 28 38 35 19 43 34
Confidence in my ability to manage my investments
Very confident 23 19 30 14 24 20 26 18 12 15 46 26 28 36 11 10 15 8 26 8 19
Somewhat confident 57 60 54 60 54 55 62 65 64 64 42 43 50 45 62 67 48 61 59 53 53
Not at all/not very confident 20 20 15 26 22 25 12 17 23 21 12 32 23 19 26 23 38 31 15 39 28
Confidence in understanding of the complexity of investing/financial markets
Very confident 12 14 18 11 15 10 19 11 7 8 26 14 16 19 11 8 11 6 12 7 8
Somewhat confident 54 51 55 39 42 43 52 48 44 46 43 35 41 41 57 55 39 48 59 43 48
Not at all/not very confident 35 35 27 50 43 47 29 41 49 47 31 51 43 40 32 37 50 46 29 50 44
Overall risk tolerance for investing
Very conservative 10 13 20 22 21 22 22 19 26 16 33 21 22 22 8 10 27 8 4 13 19
Somewhat conservative 55 52 53 59 53 54 56 62 56 48 50 57 47 51 56 62 45 63 58 58 58
Somewhat aggressive 34 31 23 17 23 20 22 18 15 35 14 18 28 23 31 25 24 28 37 26 20
Very aggressive 2 4 4 1 4 3 1 1 2 2 2 3 3 5 5 4 4 1 1 2 4
Advice to future generations
Type of investment environment future generation will face
More difficult 46 70 62 78 61 80 65 68 76 54 56 44 68 58 69 76 45 79 34 71 69
About the same 25 24 30 16 26 14 30 27 21 36 21 32 19 22 15 15 39 14 24 14 25
Easier 29 6 9 6 14 6 5 5 3 10 23 24 13 20 16 10 16 8 41 15 5
Investment advice for future generations
Make a plan and stand by it over time 62 50 30 32 43 46 37 43 41 50 62 66 67 76 44 51 46 62 70 65 48
Make sure you understand what you invest in 61 54 53 56 62 56 69 66 63 65 67 66 66 77 48 71 52 51 63 49 66
Start investing early in life 55 82 74 70 37 49 62 61 59 68 82 80 72 79 54 70 19 68 49 41 85
Avoid short-term decisions based on emotion 54 51 52 44 52 54 46 51 63 49 68 64 55 71 38 58 33 53 56 43 57
Be cautious about taking risk 44 30 31 45 52 57 50 60 63 32 64 52 57 63 43 48 37 41 45 46 30
Don't make the mistakes that I have made 32 10 9 17 22 16 17 13 27 15 38 47 34 53 29 30 22 45 37 38 21
Employ a professional financial advisor 31 33 28 13 20 14 18 20 16 19 35 28 40 46 26 21 18 14 33 26 33
Gl ob al US UK Fran ce Sp ai n Ita ly Ge rm any Sw itz er la nd Be lg iu m Sw ed en Br az il Ch ile Me xi co Col om bi a Hon g K on g Si ng apo re Jap an Ta iw an Chin a So uth K or ea Au st ra lia
Non traditional investments††
Interest in learning about non-traditional investments
Extremely interested 15 4 7 4 13 10 6 2 2 3 16 5 16 16 9 9 11 6 21 7 1
Very interested 33 12 13 9 23 19 14 4 10 12 24 25 42 38 33 17 23 20 41 33 9
Somewhat interested 32 28 29 33 42 35 26 36 30 38 35 44 33 35 39 51 35 49 31 44 29
Not at all/not very interested 20 56 51 55 22 35 55 58 58 48 24 25 9 10 18 22 31 26 7 16 61
% of investment portfolio willing to Invest in non-traditional investments (Base: Interested in non-traditional Investments)
Average 29 26 21 21 22 23 31 22 19 24 27 33 31 33 31 24 31 24 30 32 23
Benefits of non-traditional investments
Provide additional diversification of my portfolio 56 49 37 46 48 52 34 26 49 35 45 43 50 53 40 54 36 46 63 42 46
Opportunities to outperform market averages 48 49 46 39 41 48 46 33 33 42 60 43 53 50 48 54 40 36 47 55 47
Help protect against downturns in the equity market 46 49 41 31 40 39 46 42 36 44 27 54 53 57 45 54 45 46 46 38 50
Access to investment strategies that I can't
access on my own 40 22 22 29 36 35 22 32 22 34 27 43 49 47 37 36 26 40 47 38 29
Concerns about non-traditional investments
Lack of understanding of the product 53 51 59 41 38 40 42 40 45 40 61 36 38 49 45 57 35 71 56 44 62
Volatility 50 58 49 43 46 40 17 21 29 17 40 44 50 58 32 43 36 48 50 55 55
Lack of transparency 49 32 37 51 48 52 58 54 48 37 47 54 39 43 39 51 39 60 54 37 39
Higher fees 37 43 42 27 31 18 26 32 35 45 32 43 34 28 41 49 32 36 38 24 45
Lack of liquidity 30 30 24 18 26 21 22 23 13 23 33 36 39 41 27 40 28 32 29 31 26
Tax consequences 24 33 27 31 31 29 28 23 37 31 30 31 48 41 28 26 31 23 19 23 34
% who do not understand term at all/very well (Base: US/Europe only)
Unconstrained investments 41 64 60 27 42 35 60 55 55 65 – – – – – – – – – – –
Alternative investments 62 42 35 20 32 27 20 23 31 27 – – – – – – – – – – –
Long-short investments 76 25 31 9 20 10 42 45 27 19 – – – – – – – – – – –
Total return 83 16 16 23 38 31 9 14 29 23 – – – – – – – – – – –
Yield 84 17 13 12 41 7 10 11 12 13 – – – – – – – – – – –
Progress against goals
Primary goals of investing
Grow my wealth 74 57 48 29 53 51 49 52 42 42 59 51 68 69 66 65 49 69 84 63 56
Providing for my own retirement 62 82 72 59 56 49 69 73 64 70 61 68 68 68 56 71 41 79 57 66 79
Protect my wealth 59 58 42 47 55 55 57 55 53 36 53 50 59 68 51 63 38 56 63 36 50
Maintain my current lifestyle later in life 57 70 60 58 68 56 72 64 66 63 67 63 63 71 51 54 46 61 54 50 74
Protect my wealth for my children 40 20 23 41 48 48 25 25 43 24 57 46 59 66 35 36 16 31 47 35 30
Provide for a family member's need 36 16 17 12 20 14 17 15 10 8 47 32 34 37 37 24 13 38 44 32 9
Generate income for living expenses 31 55 47 21 44 43 31 43 38 42 50 50 51 60 47 55 34 25 21 36 57
Provide for my family after I am gone 28 29 26 32 39 39 36 38 36 22 48 43 55 60 43 41 20 34 26 27 29
Saving for a major purchase 17 9 14 15 12 15 24 25 15 18 44 40 31 43 25 24 9 3 19 20 11
Progress toward goals going very/extremely well
Protecting my wealth 61 58 55 41 88 45 76 57 62 42 82 68 73 81 68 45 32 64 65 39 50
Maintaining my current lifestyle later in life 59 64 55 39 83 41 77 58 60 51 75 65 73 79 66 40 33 63 62 40 45
Providing for my own retirement 58 65 60 40 80 45 77 61 64 51 73 62 66 73 60 41 31 62 61 37 45
Generating income for living expenses 55 64 62 43 82 44 64 54 61 48 74 68 77 79 62 40 34 61 54 44 43
Growing my wealth 53 54 49 35 81 36 67 42 40 40 66 55 59 68 59 35 29 57 58 34 44
Providing for my family after I am gone 55 60 61 42 80 44 75 61 67 50 73 53 70 65 62 39 31 57 57 36 47
Protecting my wealth for my children 55 55 54 45 84 45 75 48 61 44 77 67 72 77 63 41 30 53 60 32 41
Providing for a family member's need 54 62 68 48 85 47 66 44 50 47 70 67 70 60 68 42 36 62 56 38 46
Saving for a major purchase 52 59 58 39 71 40 67 45 44 54 67 60 57 61 65 32 31 48 55 44 45
†† Defined in survey as investments focused on non-traditional asset classes, including private equity, hedge funds, currencies and commodities, which may use tactics such as hedging,
Gl ob al US UK Fran ce Sp ai n Ita ly Ge rm any Sw itz er la nd Be lg iu m Sw ed en Br az il Ch ile Me xi co Col om bi a Hon g K on g Si ng apo re Jap an Ta iw an Chin a So uth K or ea Au st ra lia
Progress against goals (Continued)
Progress toward goals going somewhat/not at all well (%)
Saving for a major purchase 48 41 42 61 29 60 33 55 56 46 33 40 43 39 35 68 69 52 45 56 55
Growing my wealth 47 46 51 65 19 64 33 58 60 60 34 45 41 32 41 65 71 43 42 66 56
Providing for my family after I am gone 46 40 39 58 20 56 25 39 33 50 27 47 30 35 38 61 69 43 43 64 53
Providing for a family member's need 46 38 32 52 15 53 34 56 50 53 30 33 30 40 32 58 64 38 44 62 54
Generating income for living expenses 45 36 38 57 18 56 36 46 39 52 26 32 23 21 38 60 66 39 46 56 57
Protecting my wealth for my children 45 45 46 55 16 55 25 52 39 56 23 33 28 23 37 59 70 47 40 68 59
Providing for my own retirement 42 35 40 60 20 55 23 39 36 49 27 38 34 27 40 59 69 38 39 63 55
Maintaining my current lifestyle later in life 42 36 45 61 17 59 23 42 40 49 25 35 27 21 34 60 67 37 38 60 55
Protecting my wealth 40 42 45 59 12 55 24 43 38 58 18 32 27 19 32 55 68 36 35 61 50
Concerns that could derail investment progress (%)
Inflation 49 36 35 11 22 25 37 18 23 14 60 33 58 45 43 53 24 51 56 28 28
Making the wrong investment decisions 37 17 14 12 27 21 12 10 17 17 30 39 26 51 26 38 19 33 45 34 17
Low economic growth in my country 33 44 30 47 50 51 17 17 33 24 56 36 63 31 29 37 30 40 29 39 38
Increasing market volatility 32 30 21 17 23 29 12 15 17 6 21 35 38 39 38 39 25 31 35 36 26
An increasing tax burden 31 31 15 12 53 52 34 29 40 15 52 32 59 47 24 20 38 20 30 35 27
Low global growth 30 28 35 23 19 48 28 38 31 27 29 27 28 21 39 33 26 24 30 41 34
Low interest rates/yields 29 33 38 34 30 23 42 41 53 15 24 24 25 24 25 29 28 21 26 47 37
Geopolitical unrest 29 26 18 32 28 30 19 29 26 26 19 20 30 30 28 31 21 31 30 23 21
Economic weakness in Europe 24 25 48 41 43 45 34 39 46 34 20 29 19 20 27 28 19 16 22 23 32
Reduced economic stimulus in the US 24 32 30 13 18 18 10 8 15 31 15 21 21 21 29 30 27 29 22 30 30
Rising interest rates/yields 11 15 12 5 14 8 4 13 10 3 27 22 16 27 23 27 8 6 11 17 22
Not concerned 7 13 12 12 8 4 15 10 8 18 7 12 5 6 1 3 5 3 5 1 15
Potential obstacle to living desired lifestyle in retirement (%) (Base: Less than very confident)
Having a catastrophic event that uses up my retirement funds 64 61 45 45 40 27 60 63 52 37 45 68 54 55 47 64 47 63 69 53 52
Government not following up on obligations 48 39 33 64 73 64 37 44 62 54 67 42 52 52 29 22 33 56 51 22 43
Low interest rate environment 40 33 58 30 29 32 38 38 50 21 21 20 31 28 37 36 37 44 43 35 45
Not saving enough for my retirement 37 36 28 16 32 20 29 32 21 30 52 60 56 65 39 47 36 51 36 40 49
Living longer than my retirement funds last 32 39 32 17 11 14 29 21 20 23 18 34 24 19 38 52 35 27 31 42 45
Decisions with most positive impact on investing success in past 2 years (%)
Developed a financial plan 48 29 26 25 22 28 29 30 29 33 39 37 38 49 36 34 17 37 56 37 36
Invested in products other than just stocks and bonds 42 26 20 40 30 43 29 30 30 27 29 25 27 41 38 37 24 32 48 29 24
Took cash off the sidelines and invested it 40 19 36 26 42 19 31 23 26 22 33 48 42 41 32 32 35 47 44 43 31
Changed my spending habits so I could save/invest more 36 32 29 35 31 37 23 35 38 30 52 65 63 67 37 44 34 57 33 56 49
Increased the role of my existing advisor 23 14 11 9 7 8 8 11 10 8 7 1 8 11 18 8 12 9 29 11 7
Took a more global approach to investing 23 25 21 26 23 38 17 13 27 19 34 16 18 23 40 32 16 34 25 16 15
Took on more risk to achieve better returns 19 21 28 16 30 21 11 11 13 20 25 34 33 33 23 32 22 14 18 24 15
Gl ob al US UK Fran ce Sp ai n Ita ly Ge rm any Sw itz er la nd Be lg iu m Sw ed en Br az il Ch ile Me xi co Col om bi a Hon g K on g Si ng apo re Jap an Ta iw an Chin a So uth K or ea Au st ra lia
Use of financial advisor
Work with Financial advisor (%)
Yes 38 55 34 31 26 39 17 20 32 19 11 10 31 26 56 35 20 21 39 53 36
% interested in working with a financial advisor (Base: Do not use an advisor)
Extremely/very interested 66 26 22 18 37 37 23 16 19 23 27 12 36 24 52 38 37 59 87 71 28
Not very/not at all interested 34 74 78 82 63 63 77 84 81 77 73 88 64 76 48 62 63 41 13 29 72
% who strongly agree that their financial advisor (Base: Use an advisor)
Is available and responsive 48 64 47 40 42 48 39 34 26 25 71 37 39 53 23 28 39 18 45 16 42
Is knowledgeable about investing and current market trends 45 61 62 40 55 45 45 31 30 43 71 41 51 57 21 30 38 21 42 17 44
Takes the time to understand my financial situation and goals 44 64 58 42 40 44 40 33 29 28 57 51 47 49 23 23 31 24 40 16 45
Provides advice tailored to my specific investment needs 40 61 48 28 38 40 39 43 26 30 70 51 28 63 21 26 31 24 36 16 43
Instills confidence that he/she will help me to achieve
financial success 40 57 48 27 48 47 49 33 26 33 60 49 36 53 23 29 30 15 39 13 38
Has my best interests at heart 40 53 46 26 49 35 37 30 13 34 57 43 32 49 19 26 23 20 39 16 39
Is transparent about fees and charges 39 48 49 30 51 42 39 27 23 38 77 49 47 66 13 30 30 17 42 10 40
Brings me investing opportunities I would not find on my own 39 48 42 38 40 35 46 35 32 41 57 39 43 45 23 27 31 16 40 16 30
Asks the right questions 38 50 48 26 42 37 40 34 19 37 48 41 36 49 21 20 36 21 38 9 30
Educates me about financial matters 37 48 41 31 31 44 42 44 23 37 67 51 45 66 21 29 26 19 37 20 32
Takes a global approach to investing 28 44 39 35 35 47 33 23 26 34 59 47 33 47 22 22 31 19 24 12 27
Top three benefits received from financial advisor (%) (Base: Use an advisor)
Opportunity for better investment performance 45 45 51 29 38 47 22 37 45 50 46 55 30 32 39 52 30 55 45 51 31
Access to investment opportunities I would not get on my own 42 32 52 49 44 32 28 38 49 65 54 37 46 45 42 51 43 44 45 31 43
Help me understand the various investments in my portfolio 40 32 19 30 36 30 40 36 21 53 53 45 37 32 38 38 24 60 45 27 34
Avoid costly mistakes I might make on my own 39 45 58 38 46 41 46 34 37 21 41 43 46 51 31 28 44 31 33 48 46
Create a formal financial plan to achieve my goals 34 38 31 25 20 42 36 28 28 15 32 28 48 44 22 28 26 34 34 25 57
Someone to discuss investment ideas with 28 25 24 25 32 33 31 37 37 19 40 47 32 40 29 39 43 43 29 32 34
Someone to manage my entire portfolio 27 38 28 23 31 21 30 33 22 35 26 16 22 13 36 27 25 16 24 35 21
Peace of mind 24 40 26 38 29 27 36 33 30 40 6 20 32 34 24 13 31 6 17 38 29
Top three things financial advisors could do more of (%) (Base: Use an advisor)
Better investment performance 52 25 23 50 32 36 34 34 50 34 40 41 47 51 48 50 51 60 61 61 16
Look for innovative/new solutions 44 15 13 31 31 26 16 27 38 20 34 31 45 49 34 37 26 36 58 30 24
Lower fees 37 38 48 45 31 43 31 60 44 50 25 20 20 32 33 41 31 53 37 26 36
Better customer service 27 9 12 22 28 21 19 22 16 12 45 20 29 21 36 29 38 43 32 37 22
More proactive approach 25 21 20 21 29 23 18 15 24 13 18 45 45 36 32 41 36 40 25 35 30
More financial planning support 25 13 15 27 18 25 15 17 20 21 40 25 26 30 48 25 26 33 29 43 10
More customization 24 14 19 26 36 26 30 25 28 17 23 39 27 34 36 19 34 16 25 49 13
Gl ob al US UK Fran ce Sp ai n Ita ly Ge rm any Sw itz er la nd Be lg iu m Sw ed en Br az il Ch ile Me xi co Col om bi a Hon g K on g Si ng apo re Jap an Ta iw an Chin a So uth K or ea Au st ra lia International investing
% of investors who invest internationally
Average 79 78 71 68 64 86 61 59 72 75 33 48 51 58 92 77 59 90 87 71 60
% of investments held outside of home country
Average 17 14 18 13 15 31 16 16 23 23 11 10 13 12 26 20 18 21 18 13 13
% of income producing assets held outside home country
Average 20 16 18 16 20 29 18 23 27 22 22 21 21 18 24 21 28 23 20 16 17
Focus on international opportunities compared to 5 years ago (%) (Base: Invest internationally)
Much more of a focus 28 8 11 5 30 22 4 8 6 8 32 17 31 35 12 15 22 20 34 15 8
Somewhat more of a focus 47 28 27 38 44 37 29 22 34 39 42 51 51 51 52 44 38 53 53 51 32
No change compared to five years ago 20 55 55 38 23 34 50 50 41 43 13 19 12 10 28 34 25 18 10 16 39
Somewhat less of a focus 4 7 5 11 2 5 8 17 15 7 4 11 5 3 7 7 13 8 2 17 15
Much less of a focus 1 2 3 8 2 3 9 3 4 3 9 3 1 ** 1 ** 3 1 ** 1 6
Benefits sought by investing internationally (%) (Base: Invest internationally)
Potential for higher returns than in home market 62 52 55 45 51 56 35 34 69 47 41 46 54 57 41 58 52 64 65 52 54
Diversify risk across different markets 55 59 59 55 53 55 63 47 57 59 34 34 48 45 47 55 54 69 53 32 48
Greater range of investment choices 51 37 30 34 31 31 37 32 38 34 50 38 47 57 45 42 39 45 55 49 35
Easier to buy and sell assets 31 5 15 14 31 13 15 15 7 14 27 46 51 56 32 25 16 26 39 32 11
Greater liquidity 29 7 13 17 20 14 18 19 12 18 41 49 44 58 33 29 26 25 34 36 10
% who cite as major barriers to investing internationally
Global uncertainty 59 62 49 49 39 49 41 56 49 51 51 52 53 62 45 61 51 62 60 53 67
Not familiar with opportunities 45 37 41 26 44 22 33 35 33 28 49 58 56 58 40 50 23 45 49 35 44
Currency risk 39 34 39 21 29 40 36 49 28 34 39 28 41 45 44 57 50 49 39 37 45
Not enough transparency 37 21 26 34 36 30 43 35 43 42 29 39 33 34 31 40 34 59 41 43 33
Too much risk 34 29 24 29 22 19 29 22 33 22 35 29 26 30 26 40 34 36 35 35 36
Likelihood to consider investing outside of home country (%) (Base: Don't invest internationally)
Definitely would 2 4 3 ** 1 11 4 1 4 4 3 5 5 8 7 1 1 ** ** 2
-Probably would 20 14 39 26 29 40 19 14 12 29 34 30 51 53 40 45 17 15 14 27 27
Probably would not 51 56 36 46 53 30 45 50 31 51 31 35 21 25 40 53 63 17 52 54 47
Definitely would not 28 26 22 28 18 19 33 35 53 16 33 31 23 14 12 2 18 68 35 17 26
Likelihood to consider investing for income outside home country (%) (Base: Don't invest for income internationally)
Definitely would 1 1 5 - 5 12 2 1 4 7 4 3 6 7 5 1 1 ** ** ** **
Probably would 24 23 24 29 43 42 22 23 5 29 36 35 54 61 52 51 22 40 16 37 24
Probably would not 51 57 46 45 42 32 48 53 45 38 30 34 18 21 36 43 63 24 52 51 53
Definitely would not 24 19 25 26 10 14 28 24 45 25 29 27 22 11 8 5 14 36 32 12 24
Likelihood to consider international equities (Base: Would consider investing internationally)
Definitely would 6 3 20 3 3 24 23 11 56 3 12 7 11 8 15 2 ** ** ** 8 10
Probably would 22 54 14 27 61 17 14 16 30 27 15 62 50 59 13 27 26 ** ** 15 11
Probably would not 64 37 65 70 28 48 37 56 14 65 69 22 27 29 72 71 44 100 100 69 79
Definitely would not 8 6 1 ** 8 10 26 16 ** 5 5 9 11 4 ** ** 31 ** ** 7
-Likelihood of investing internationally in fixed income (%) (Base: would consider investing internationally)
Definitely would 5 8 8 ** 9 14 6 ** 50 3 7 12 18 17 ** ** ** ** ** ** **
Probably would 42 30 14 27 87 7 11 11 7 30 15 82 71 74 15 25 22 - 67 22 22
Probably would not 47 57 70 64 3 69 51 67 20 53 67 2 9 9 85 75 65 100 33 63 78
Gl ob al US UK Fran ce Sp ai n Ita ly Ge rm any Sw itz er la nd Be lg iu m Sw ed en Br az il Ch ile Me xi co Col om bi a Hon g K on g Si ng apo re Jap an Ta iw an Chin a So uth K or ea Au st ra lia
International investing (Continued)
Countries representing best investing opportunities over next 12 months (%) (Base: invests internationally or would consider doing so)
United States 52 56 31 46 39 23 32 33 34 34 48 38 58 58 40 45 46 50 54 41 37
China 50 47 39 46 45 48 55 54 49 57 55 71 56 45 74 63 14 71 52 59 66
Emerging Markets 45 57 45 40 46 53 39 40 52 45 38 42 30 21 37 55 53 52 42 50 54
Europe (Excluding UK) 35 23 21 29 31 18 49 51 24 38 20 20 22 22 24 21 22 21 42 25 27
Brazil 25 23 31 39 29 35 28 27 36 19 51 26 27 37 12 22 36 13 24 27 12
India 22 22 37 28 19 38 21 24 33 34 24 25 16 13 26 28 42 24 17 35 42
Japan 21 29 25 19 36 19 27 19 24 24 27 37 41 42 34 29 55 32 15 10 30
United Kingdom 19 16 42 19 19 16 14 14 14 9 19 16 23 21 19 18 8 8 21 10 15
Russia 19 7 16 17 20 33 18 23 21 25 3 6 10 7 16 7 13 10 23 22 10
Latin America (Excluding Mexico) 12 20 12 17 18 18 17 17 12 15 14 18 18 35 19 10 12 20 9 20 5
Investment opportunities by asset class: United States (%) (Base: selected country as opportunity)
Good opportunities in bonds only 15 3 10 11 6 16 10 6 12 2 6 8 18 7 19 8 15 18 17 15 7
Good opportunities in stocks only 37 30 50 35 44 23 52 55 45 43 25 35 20 23 47 50 40 31 39 35 30
Good opportunities in both bonds and stocks 43 55 27 50 46 60 29 35 34 50 63 50 62 68 32 36 34 45 40 47 54
Neither 5 12 13 4 4 ** 9 5 9 4 6 6 1 2 1 6 11 6 3 4 9
Investment opportunities by asset class: United Kingdom (%) (Base: selected country as opportunity)
Good opportunities in bonds only 21 12 11 8 13 19 20 19 20 15 10 19 11 9 ** 11 31 13 23 5 5
Good opportunities in stocks only 27 26 42 30 33 20 38 44 25 36 12 23 19 31 57 31 52 30 27 34 39
Good opportunities in both bonds and stocks 51 56 43 57 48 60 30 30 28 42 78 58 65 57 41 36 6 37 50 53 46
Neither 2 7 3 5 6 2 13 7 27 6 ** ** 5 3 3 22 11 20 ** 8 9
Investment opportunities by asset class: Europe (ex-UK) (%) (Base: selected country as opportunity)
Good opportunities in bonds only 21 4 8 13 11 13 7 5 12 4 11 14 22 5 9 2 14 10 25 7 9
Good opportunities in stocks only 26 41 45 25 33 30 31 35 29 35 14 23 21 24 31 46 36 28 24 30 25
Good opportunities in both bonds and stocks 48 45 35 52 56 51 54 52 46 52 72 55 58 68 52 45 28 52 49 55 45
Neither 5 10 12 10 ** 6 9 9 13 10 3 8 ** 3 9 6 21 9 3 8 21
Investment opportunities by asset class: Japan (%) (Base: selected country as opportunity)
Good opportunities in bonds only 9 4 8 3 7 14 11 14 4 6 9 16 10 7 8 8 4 14 12 16 2
Good opportunities in stocks only 36 37 40 27 43 17 41 43 26 28 30 31 23 26 53 34 45 41 34 66 32
Good opportunities in both bonds and stocks 48 48 41 58 46 67 45 27 53 52 56 49 64 66 36 44 41 38 50 13 55
Neither 7 11 11 12 3 1 4 16 17 14 5 4 3 1 3 15 10 8 4 4 10
Investment opportunities by asset class: Brazil (%) (Base: selected country as opportunity)
Good opportunities in bonds only 20 2 11 15 17 13 15 18 15 5 17 13 24 10 13 11 24 35 25 26 18
Good opportunities in stocks only 28 39 35 42 29 18 28 35 32 57 17 35 22 30 36 34 35 31 25 23 47
Good opportunities in both bonds and stocks 49 46 43 36 53 63 49 42 46 29 61 52 52 59 38 50 32 33 51 43 20
Neither 4 13 10 7 1 6 8 6 8 9 5 ** 2 2 12 5 10 - - 8 15
Investment opportunities by asset class: Russia (%) (Base: selected country as opportunity)
Good opportunities in bonds only 13 20 9 10 11 27 16 24 10 1 ** ** 7 19 6 14 17 32 11 14 10
Good opportunities in stocks only 19 23 34 50 36 16 20 29 23 54 31 30 43 45 37 59 46 11 15 29 20
Good opportunities in both bonds and stocks 66 53 35 37 51 52 47 40 52 40 50 70 50 37 54 28 26 45 74 48 51
Neither 2 3 22 4 2 4 16 7 15 5 19 ** ** ** 4 ** 10 11 ** 9 19
Investment opportunities by asset class: India (%) (Base: selected country as opportunity)
Good opportunities in bonds only 14 2 13 10 12 19 14 17 5 1 21 11 20 9 17 10 18 7 17 13 13
Good opportunities in stocks only 31 47 34 45 37 20 17 24 28 47 7 46 55 18 24 38 22 31 31 29 43
Good opportunities in both bonds and stocks 50 40 48 43 49 55 53 44 60 50 66 36 20 73 55 35 43 46 52 59 36
Neither 5 11 5 2 2 6 17 15 7 2 5 7 4 ** 4 16 17 15 - - 8
Investment opportunities by asset class: China (%) (Base: selected country as opportunity)
Good opportunities in bonds only 14 4 6 5 9 18 10 13 8 1 12 12 16 9 8 4 24 14 18 16
-Good opportunities in stocks only 24 42 34 48 35 17 38 31 29 47 19 31 26 24 40 46 38 41 17 41 37
Good opportunities in both bonds and stocks 57 41 47 41 55 60 40 47 50 45 66 51 53 63 51 41 24 38 63 42 51
Neither 4 12 14 6 1 4 13 10 13 7 4 6 5 4 1 10 15 8 2 1 12
Gl ob al US UK Fran ce Sp ai n Ita ly Ge rm any Sw itz er la nd Be lg iu m Sw ed en Br az il Ch ile Me xi co Col om bi a Hon g K on g Si ng apo re Jap an Ta iw an Chin a So uth K or ea Au st ra lia
International investing (Continued)
Investment opportunities by asset class: Latin American (ex-Mexico) (%) (Base: selected region as opportunity)
Good opportunities in bonds only 8 3 7 8 6 16 9 6 22 2 15 13 29 5 17 ** 16 14 10 15 **
Good opportunities in stocks only 43 41 53 38 34 23 40 36 25 51 14 39 14 29 33 46 37 25 40 49 **
Good opportunities in both bonds and stocks 41 46 33 42 58 55 47 51 34 43 63 44 58 65 42 52 25 57 43 32 84
Neither 9 10 7 12 3 6 4 8 19 4 8 3 - 2 8 2 21 4 7 4 16
Shifted investment assets from emerging markets to developed markets in past rear (%) (Base: Europe/Asia investors only)
Yes 33 ** 9 15 15 22 10 9 13 24 ** ** ** ** 52 27 21 36 39 28 **
No 67 ** 91 85 85 78 91 91 87 76 ** ** ** ** 48 73 79 64 61 72 **
Reasons for shifting assets (%) (Base: shifted assets to developed markets)
Seek a higher return 33 ** 27 20 39 19 37 25 36 42 ** ** ** ** 37 28 33 15 31 19 **
Better diversify portfolio 32 ** 29 53 35 41 26 36 45 23 ** ** ** ** 20 29 16 23 14 25 **
Improving economic conditions in developed countries 20 ** 29 15 16 16 29 17 12 17 ** ** ** ** 20 28 22 44 21 25 **
Seek greater income 16 ** 15 12 10 24 8 18 8 15 ** ** ** ** 23 15 30 17 35 30 **
Other ** ** ** ** ** ** ** 3 ** 3 ** ** ** ** ** ** ** 1 ** ** **
Income investing
Priority of income generating investments (%)
Extremely important 22 16 20 9 31 29 7 6 11 7 36 33 40 51 12 24 17 8 25 10 26
Important 49 41 34 42 50 45 41 36 42 43 49 42 43 37 66 51 30 34 54 58 38
Somewhat important 23 33 29 30 17 23 33 45 36 39 12 21 14 11 21 22 33 41 19 28 26
Not important 6 10 18 19 1 4 18 13 11 12 3 4 3 - 1 3 20 17 2 4 10
Asset classes used to meet income needs (%)
Guaranteed income products 56 39 38 46 58 61 55 54 60 53 53 51 50 48 40 49 37 45 61 37 40
Equity income funds 45 45 33 27 24 17 28 26 46 27 25 19 18 13 36 38 16 51 50 51 30
Income producing real estate 36 14 27 46 46 34 42 35 35 32 58 69 63 76 36 34 24 23 40 38 42
High yield bonds 34 24 20 13 22 40 5 8 24 21 12 13 30 31 31 24 19 29 40 23 10
Investment grade bonds 24 26 20 16 12 26 11 16 27 17 13 7 11 15 38 19 32 24 24 18 14
Specialized investment vehicles 22 18 8 22 7 12 9 6 10 9 14 6 20 23 25 41 28 8 24 19 5
None of the above 12 33 27 14 8 7 35 34 21 41 9 21 12 6 5 7 41 11 3 6 30
Satisfaction with income producing investments (%)
Very satisfied 9 21 22 6 20 6 14 9 3 9 21 12 14 20 10 5 5 6 7 1 15
Somewhat satisfied 59 68 63 66 61 61 64 71 61 61 52 56 62 64 67 64 44 51 60 54 63
Somewhat dissatisfied 28 9 14 23 18 28 19 16 26 27 20 23 20 13 21 27 38 40 31 38 17
Very dissatisfied 4 3 1 5 2 5 3 4 10 2 7 9 4 3 2 4 14 4 2 7 5
% return sought on income producing investments
Global average 9.5 8.3 6.6 6.1 8.4 5.9 6.8 6 6.9 8.7 9.3 10.4 10.5 11 8.3 8.5 7.3 9.1 10.4 9.5 9.2
% return earned on income-producing investments
Global average 6.2 6.4 5.1 4.5 5.5 4.4 5.2 3.9 4 6 5.4 5.2 5.8 6.2 6 5.4 4.2 5.5 6.7 5.4 6.2
Income expectations gap (percentage point difference)
3.3 1.9 1.5 1.6 2.9 1.5 1.6 2.1 2.9 2.7 3.9 5.2 4.7 4.8 2.3 3.1 3.1 3.6 3.7 4.1 3 Respondent profile Gender (%) Male 59 53 67 66 68 65 68 59 70 61 66 52 65 61 62 57 74 76 56 64 58 Female 41 47 33 34 32 35 33 41 30 39 34 48 35 39 38 43 26 24 44 36 42 Average age 49 56.3 55.8 55.4 50.6 52.5 53 53.6 58.6 55.8 51.2 51.8 49.7 50.2 46.6 48.7 52.9 50 45.7 49.1 52.6
Total investable assets $USD (000)
$200K-999K NET 71 81 85 75 83 76 75 69 71 78 37 40 54 52 54 79 70 76 59 64 76
$1M+ NET 29 19 15 25 17 24 25 31 29 22 63 60 46 48 46 21 30 24 41 36 24
Average Total Investable Assets ($USD) 1889 981 984 1786 1116 1689 1957 2168 2157 1611 4378 3082 3569 3676 2868 1186 2667 1410 2466 2102 1153
Average Annual HHI $USD (000) 543 214 185 339 285 230 574 265 377 299 1577 1258 1088 1031 1189 337 499 331 731 552 247
Responsibility for financial matters (%)
*As of December 31, 2013.
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