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Ian Price, wealth creation solutions director at Zurich says:
"We are a cautious nation when it comes to investing. Typically, we don't want to see the value of our investments drop, and we don't like to risk 'playing the game' to get the most out of our money.
"Despite, or perhaps because of dramatic falls in the stock market, people find it difficult to understand how much or little a risk they may be taking when they invest their money. And while many of us like to think we are comfortable with a level of investment risk, the reality is often quite different.
"Current stock market volatility means that customers are more cautious than before. We have recognised this and have devised this profiling method with new portfolios to match customer expectations."
To make it easier, Zurich has designed corresponding investment portfolios for each risk band. Actively managed by Threadneedle, the funds invest in a range of assets carefully selected to suit investor's risk profiles. A further range of new multi-manager portfolios, developed by Seven Investment Management (7IM), extend the range of options available to more adventurous investors.
Additional key findings from the research, which questioned both non-investors and investors, include;
- 81 per cent of investors said they would hold their investments, even if their investments dropped in value by 20 per cent; but one in three of adventurous investors would buy more of the same investment
- 54 per cent of investors have specific goals for their savings and investments
- ends -
Notes to editors:
The Henley Centre research was carried out in July 2002 amongst investors and non-investors with a total sample size of 643.
Question 1
- "When it comes to investing, I would describe myself as having…"
Question 2
- "If your investments dropped in value by 20%, how would you react?"
Question 3
- "What are your main savings and investment goals?"
Question 4
- "How would you compare yourself to others in your willingness to take financial risks?"
Question 5
- "When you make a significant financial decisions how do you normally feel afterwards?"
Question 6
- "Imagine you had to choose one of the investments below, which would it be?"
- Investment A never has a negative return and has returns between 0% and 3%
- Investment B has a negative return once in every 12 years and has returns between -1% and 7%
- Investment C has a negative return once in every 10 years and has returns between -2% and 9%
- Investment D has a negative return once in every 8 years and has returns between -3% and 11%
- Investment E has a negative return once in every 6 years and has returns between -4% and 13%
- Investment F has a negative return once in every 4 years and has returns between -5% and 15%
- Agree strongly
Zurich Financial Services is an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs well over 70,000 people.
Zurich Financial Services, (UKISA) is part of the Zurich Financial Services Group and comprises the Group's operations in the UK, Ireland and International Businesses.
For more information, please contact:
Erica Harper, Zurich Financial Services on 01793 503969
Nicky Barrett/Sharon Prasad/Kirsten Smart, Consolidated Communications on 020 7287 2087/ 7208 2387 | 