INVESTORS LOOK AHEAD TO 2013 WITH GROWING CONFIDENCE.
18 December 2012
Research from Legal & General Investments, one of the UK's largest investment providers, shows that investor confidence has stabilised during the past year.
A third (34%) of investors are confident in their investments and the market, anticipating an increase in the value of their portfolios over the next six months. This is a small increase on 2011 when it was 33%. While two in five investors (40%) expect no change to the value, which is an 11% increase from 2010.
Significantly, just 14% expect a decrease in the value of their investments, a 6% drop from last year.
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.
Despite volatile markets investors are anticipating a level of return that exceeds most cash alternatives from their investments, with 29% expecting 2.5%-4.99%, while 8% expect 7.5% and above. The average expected return is 4.32%. Men remain more confident (38%) than women (28%), while the over 55s are the most pessimistic investors with 14% expecting a decrease in the value of their investments.
Wales shows itself to be the most confident region with nearly half (45%) of all Welsh investors believing they will see an increase from their investments in the next six months.
|Confidence in the value of investments over six months||2012||2011||2010|
|They will increase in value compared with today||34%||33%||34%|
|They will remain at the same value compared with today||40%||32%||29%|
|They will be worth less than today||14%||22%||22%|
Simon Ellis, Managing Director, Legal & General Investments, said: "In the current economic climate, and following a period of extreme market volatility, it is heartening to see investors' confidence stabilise. The research indicates that there is an increasing sense of positivity with a substantial decrease in the number of investors who expect a fall in the value of their investments."
He continued: "It appears that investors are in it for the long haul and having navigated difficult waters and turbulent times, now is the time to re-assess investment ambitions carefully. One would hope this will enable the industry to re-engage with customers more positively after RDR in 2013. It is certainly an opportunity to look at asset allocation and think about portfolio diversification with a trusted, heritage brand to help manage that investment journey.
"Legal & General Investments' user friendly, easy to navigate website is the one-stop shop for advisers and consumers alike to obtain all the latest investment news and information."
Simon Ellis, Managing Director, Legal & General Investments
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
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