Global Investor Survey 2017 Dutch consumers A global study of consumer engagement, investment outcomes and future perceptions November 2017 For Professional investors or advisers only For media only.
Schroders Global Investor Survey 2017 Source Schroders commissioned Research Plus Ltd to conduct an independent online survey of 22,100 investors in 30 countries around the world, between 1 30 June 2017. This research defines investors as those who will be investing at least 10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years; these individuals represent the views of investors in each country included in the survey. Retired investors were boosted in each country, where it was feasible. 1
Global summary The Schroders Global Investor Study 2017 illustrated that investors worldwide, continue to have a willingness to improve their investments understanding, with the majority wanting to improve it in at least one area. However, investors felt they had a good understanding of how fees affected their choice/management of investments, although there was still substantial desire to learn more Investors were fairly knowledgeable about the individual elements of a sustainable investment, although very few considered that all three definitions were applicable and they were least likely to be associated with funds that specifically avoid companies active in controversial areas. However, they feel sustainable investments have become more important to them over the past five years and consequently they have increased these types of investments. Despite this, it was still the least likely sustainable behaviour (of those tested) to be actioned, with profit still being important to them Globally, Schroders was in the lower tier of awareness, so improving these knowledge areas would provide an effective opportunity to engage with consumers and become perceived as their first choice for investment information, whilst improving awareness overall There was generally a good acceptance of using robo-advisers now, and in five years time, but provided by an investment management company, rather than any other type of organisation Future retirement income is an important consideration for non-retired investors, with most saving less than they feel they should be and a strong desire to work part-time before fully retiring 2
Global overview
Global overview Investment outcomes Over the next five years, global investors expect to make an average annual total return of 10.2%, compared to 8.7% in Europe, 11.7% in Asia and 11.7% in Americas Almost half (49%) expect to make an average return of 1%-9% and almost as many (44%), optimistically expect a minimum of 10% per year The priorities for investors disposable income were using it to invest, rather than buy things Invest in other types of investment, like equities, bonds, commodities (23%), deposit it in a bank savings account (16%) and invest in/purchase a property (13%), were the most likely uses Similarly, the main reasons for investing were to provide current or future income, rather than saving to buy something (except essential outgoings, like healthcare) At least two-thirds felt it was important to invest to grow pension-savings for future retirement (to those non-retired only) (75%), supplement pension/ annuity/superannuation scheme (to those retired only) (66%), pay for healthcare/medical bills for themselves/relative (66%) or to supplement current salary/income (65%) When asked how the current uncertainty surrounding international politics/world events affected their investments, over half (59%) said they didn t want to take on as much investment risk now However, almost as many felt world events represented investment opportunities (57%) or said they don t let politics/world events detract from their investment objectives (54%) 4
Europe overview
Europe overview Investment outcomes Over the next five years, investors expect to make an average annual total return of 8.7% in Europe, compared to 11.7% in Asia, 11.7% in Americas and 10.2% globally Over half (59%) expect to make an average return of 1%-9% and only a third (34%) the least across all three continents optimistically expect a minimum of 10% per year The priorities for investors disposable income focused on investing, rather than buying things Other types of investment, like equities, bonds, commodities (20%) or deposit it in a bank savings account (16%) were more likely than investing in/purchase a property (13%) or spend on a luxury purchase (13%) Similarly, the main reasons for investing were to provide current or future income, rather than saving to buy something (except essential outgoings, like healthcare) At least three-fifths felt it was important to invest to grow pension-savings for future retirement (to those non-retired only) (70%), supplement pension/ annuity/superannuation scheme (to those retired only) (62%) or to supplement current salary/income (61%). Paying for healthcare/medical bills (56%) was less likely in Europe Regarding how the current uncertainty surrounding international politics/world events affected their investments, over half (57%) didn t want to take on as much investment risk now Less than half said they don t let politics/world events detract from their investment objectives (49%), saw world events as investment opportunities (47%) or have more money now in cash than it used to be (45%) 6
Country highlights The Netherlands
Country highlights Investment outcomes Over the next five years, Netherlands investors expect to make an average annual total return of 8.5%, similar to Europe (8.7%) overall but less than global (10.2%) investors Two-thirds (66%) expect to make an average return of 1%-9% and three-in-ten (30%), optimistically, expect a minimum of 10% per year The main priorities for investors disposable income for the next year were mixed Invest in another type of investment, like equities, bonds, commodities (18%), deposit in a bank savings account (16%), spend it on luxury purchases, like holiday, vehicle, event (16%) and pay off debt (16%), were the most likely As for global investors, the main reasons for investing were to provide current or future income, rather than saving to buy something Over half thought it important when investing to grow pension-savings for future retirement (to those non-retired only) (58%), supplement current salary/income (54%) or supplement pension/ annuity/superannuation scheme (to those retired only) (53%), with slightly less providing a future lump-sum for their children (47%) When asked how the current uncertainty surrounding international politics/world events affected their investments, over half (55%) said they didn t want to take on as much risk now, and slightly less (48%) said they hold more of their money as cash now However, a similar proportion (47%) felt world events represented investment opportunities (47%) and four-in-ten (40%) said they don t let politics/world events detract from their investment objective 8
Changing behaviours
Investment understanding Desired areas of improvement Q8. Thinking about your knowledge and understanding of investments, which of the following would you most like to know more about? (multi-answer percentages won t sum to 100%) Netherlands Europe Global Investments that have a positive potential impact e.g. on the environment, on society 21% 27% 31% Tax efficient investments 28% 32% 31% Asset classes (equities, bonds, commodities) and their place in an investment portfolio 16% 22% 27% The costs of investing/understanding fees 26% 25% 26% The main ways of investing e.g. mutual funds 14% 21% 24% What is meant by 'long-term investing' and how it reduces risk 16% 19% 23% The effect of compounding 9% 17% 18% How saving is different to investing 7% 14% 17% Something else 2% 1% 2% I don't feel the need to improve my understanding of investments 32% 16% 12% Feel the need to improve understanding of investments 68% 84% 88% 10
Average annual investment rate of return Expected over next five years Q9. Thinking about your total investment portfolio over the next five years, what annual total (%) return (i.e. income and capital growth) do you expect to make, on average each year? Netherlands Europe 2% 1% 3% 1% 8.7% Average 8.5% Global 92% 95% 3% 1% 10.2% Profit No profit or loss Loss 2% don t know 93% 11
Disposable income use Priority over next year Q18. Thinking about any disposable income you have (after you have paid all monthly bills and required regular payments), what is your single main priority for the next year? Netherlands Europe 5% 4% 2% 5% 18% 9% 4% 5% 4% 6% 20% 16% 16% 10% 13% 13% 16% 9% 9% 16% To invest it in another type of investment (e.g. equities, bonds, commodities) To invest in or purchase a property To invest it in your pension To invest in your own business To gift it to another person or a charity Global Deposit it in a bank savings account To spend it on luxury purchases (e.g. holiday, vehicle, special occasions) To pay off debt, including a mortgage (i.e. more than minimum required amount) To keep as cash at home Other 8% 8% 10% 3% 4% 4% 11% 13% 23% 16% 12
Looking to the future
Investment motivations Reasons for investing Q20. Thinking about why you invest, how important are each of the following to you? Netherlands Important/extremely important Growing your pensions savings for your future retirement [NON-RETIRED ONLY] Paying for healthcare/medical bills for yourself or a relative Supplementing your current employment salary or income Supplementing your current pension/annuity/superannuation income [RETIRED ONLY] Being able to provide a lump sum to help your children in future to get married, buy a home or for other things Paying the educational fees of your children or grandchildren 7% 11% 24% 12% 9% 10% 14% 8% 9% 30% 28% 28% 17% 10% 26% 23% 13% 24% 45% 35% 43% 43% 37% 30% 13% 9% 11% 10% 10% 11% Netherlands Europe Global 58% 70% 75% 44% 56% 66% 54% 61% 65% 53% 62% 66% 47% 56% 59% 41% 51% 57% Supporting a family member, on an on-going basis 18% 18% 33% 25% 6% 31% 46% 54% Leaving a legacy/inheritance to your family or friends 22% 18% 31% 24% 6% 29% 48% 53% To buy something other than your home 14% 15% 33% 34% 4% 38% 47% 52% Providing a deposit towards buying or expanding your home Allowing you to try something new such as a career change or further education 25% 24% 19% 22% 29% 31% 23% 19% 4% 4% 27% 44% 50% 23% 39% 47% Leaving a legacy/inheritance to a charitable organisation 39% 20% 25% 12% 4% 16% 26% 34% Extremely unimportant Unimportant Neither Important Extremely important 14
Investment influences International politics/world events Q21. Thinking about the current uncertainty surrounding international politics/world events, how much do you agree or disagree with each of the following statements? Netherlands Somewhat /strongly agree I don't want to take on as much risk in my investments now 2% 13% 29% 43% 12% Netherlands Europe Global 55% 57% 59% I see world events as investment opportunities 3% 13% 37% 40% 7% 47% 47% 57% I don't let politics and world events detract from my investment objectives 5% 22% 34% 32% 8% 40% 49% 54% More of my money is in cash than it used to be 8% 19% 25% 33% 14% 48% 45% 48% I don't see any long-term implications for investors 6% 21% 37% 31% 6% 37% 35% 38% Strongly disagree Somewhat disagree Neither Somewhat agree Strongly agree 15
Background information
Sample details Schroders commissioned Research Plus Ltd to conduct an independent online survey of 22,100 investors in 30 countries around the world, between 1 30 June 2017 This research defines investors as those who will be investing at least 10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years; these individuals represent the views of investors in each country included in the survey Sweden n=538 UK n=1,104 France n=1,051 Germany n=1,084 Italy n=1,003 Spain n=1,001 Portugal n=422 Netherland s n=1,037 Belgium n=414 Switzerland n=502 Poland n=517 Denmark n=540 Russia n=508 Austria n=533 Canada n=1,050 USA n=1,507 Brazil n=1,020 Chile n=332 China n=1,096 Hong Kong n=504 Thailand n=508 India n=1,104 Singapore n=503 Japan n=1,095 South Korea n=507 Taiwan n=540 Indonesia n=479 UAE n=258 Australia n=1,012 South Africa n=331 20
Important information This presentation is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Schroders has expressed its own views in this document and these may change. Issued by Schroder Investment Management (Luxembourg) S.A. Netherlands branch, WTC Tower A, Level 5, Strawinskylaan 521, 1077 XX Amsterdam, Netherlands. For your security, communications may be taped or monitored. 21
Thank you
Contact Schroder Investment Management (Luxembourg) S.A. Netherlands branch WTC Tower A, Level 5 Strawinskylaan 521 1077 XX Amsterdam Netherlands T +31 (0)20 305 28 51 info-nl@schroders.com www.schroders.nl