Press releases


Simon Ellis - Managing Director, Legal & General Investments
Simon Ellis
Managing Director
Legal & General Investments

05 November 2012

Simon Ellis - Managing Director, Legal & General Investments
Simon Ellis
Managing Director
Legal & General Investments

Research* from Legal & General Investments, one of the UK's largest investment providers, shows that when choosing an investment the most important factor for consumers is how comfortable they feel with the provider. Almost a third (29%) of investors chose this option although it has dropped 2% since 2010.

Past performance is the second most important factor, according to one in five (21%) investors, highlighting how investors are looking for a solid track record in volatile markets.

Other factors deemed important by investors include fund fees and charges, which has increased in importance from 7% in 2010 to 9% in 2012. The importance of a fund manager has remained steady from 2010 to 2012, unchanged at 14%.

The findings come from Legal & General Investments' What Matters Investment Index which investigates investors' views of the market and is now in its third year.

Investors are also continuing to review their portfolios and investment options. The number of investors in actively managed funds has fallen 8% since 2010 (from 76% to 68%) and when asked the likelihood of investing in these funds in the next six months a third (34%) stated that this was 'very unlikely'.

However active funds remain more attractive to consumers than passive funds as almost half (44%) of investors are 'very unlikely' to invest in passive funds over the next six months and only 31% are currently invested in them.


Most important factor when choosing a new investment201220112010
 Best-selling asset class3%2%2%
 Past performance21%23%22%
 Geographical coverage of fund 6%6%8%
 An investment provider company I'm comfortable with 29%28%31%
 Fund manager (s) 14%14%14%
 Fund fees and charges 9%8%7%
 Other 8%8%8%
 None of these 11%10%7%


Simon Ellis, Managing Director, Legal & General Investments, said: "In the current economic climate, and during market volatility, it is understandable that investors are looking to providers they feel comfortable with. Trust and confidence in an established brand, with a solid reputation, is important particularly when making investment decisions."

He continued: "It is also interesting to see how investors are approaching their investment decisions and in which funds they are looking to invest. We believe strongly in portfolio diversification with a mix of active, passive and multi asset investments depending on your investment ambitions.  However, passive funds offer lower charges, and with the increased focus on fund charges and fees by consumers we would anticipate an increase in the take up of these funds."

Notes to editors

* All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 2030 adults. Fieldwork was undertaken between 14th and 18th September 2012.  The survey was carried out online.

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

1. The Legal & General Group, established in 1836, is one of the UK's leading financial services companies.  As at 30 June 2012, we were responsible for investing £388 billion worldwide on behalf of investors, policyholders and shareholders.  We also have over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.

For more information please contact:

Kimberley Robinson

Kimberley Robinson
PR Manager Legal & General Group

t: +44 (0) 203 124 2092