Investors’ Appetite for Gains Exceeds Their Stomach for Risk, and Index Funds May Not Deliver What They Want
Natixis Global Asset Management has released the results of its 2017 Global Individual Investor survey. A total of 8300 individual investors (400 in France) have been surveyed between February and March 2017 in 21 countries across Asia, Europe, the Americas and the Middle East. Among the main findings:
- Passive index funds could leave investors short of their goals. French investors say theyneed returns of 9.1% above inflation to meet their goals at a time when many experts expect low single-digit returns from many market indices.
- Investors’ use of index funds may be at odds with their strong desire for ESG investments. 80% of French investors want their investments to reflect their personal values, but only 44% say index funds contain these types of companies.
- Closet indexers are damaging trust in the fund industry. 72% of investors expect truly active managers, but almost the same number (66%) believe many managers are charging active management fees while really just tracking an index
- More education is needed on alternative investments. 60% of French investors believe it is essential to invest in alternatives to reduce risk, but only 40% do so effectively.
- When it comes to making investment decisions, investors trust their financial advisors (75%), more than their close friends or family (54%), the financial media (59%) or social media (32%).
Natixis Global Asset Management’s 2017 survey of 400 retail investors was conducted by CoreData as part of a broader, global survey with 8300 investors in 21 countries in Asia, Europe, the Americas and the Middle East. The survey was conducted online in February and March 2017 with investors possessing at least USD 100,000 (or an equivalent sum in purchasing power parity) in net investable assets.
The full report can be viewed at: ngam.natixis.com/us/research/individual-investor-survey-trust-2017.
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Natixis Global Asset Management is ranked among the world’s largest asset management firms.1 Uniting over 20 specialized investment managers globally ($951.7 billion AUM2), we bring a diverse range of solutions to every strategic opportunity. From insight to action, Natixis Global Asset Management helps our clients better serve their own with more durable portfolios.
Headquartered in Paris and Boston, Natixis Global Asset Management, S.A. is part of Natixis. Listed on the Paris Stock Exchange, Natixis is a subsidiary of BPCE, the second-largest banking group in France. Natixis Global Asset Management, S.A.’s affiliated investment management firms and distribution and service groups include Active Investment Advisors;3 AEW Capital Management; AEW Europe; AlphaSimplex Group; Axeltis; Darius Capital Partners; DNCA Investments;4 Dorval Finance;5 Emerise;6 Gateway Investment Advisers; H2O Asset Management;5 Harris Associates; IDFC Asset Management Company; Loomis, Sayles & Company; Managed Portfolio Advisors;3 McDonnell Investment Management; Mirova;5 Natixis Asset Management; Ossiam; Seeyond;7 Vaughan Nelson Investment Management; Vega Investment Managers; and Natixis Global Asset Management Private Equity, which includes Seventure Partners, Naxicap Partners, Alliance Entreprendre, Euro Private Equity, Caspian Private Equity and Eagle Asia Partners. Visit ngam.natixis.com for more information.
Natixis Global Asset Management also includes business development units located across the globe, including NGAM S.A., a Luxembourg management company authorized and regulated by the CSSF, as well as branch offices of NGAM Distribution in France.
- 1 Cerulli Quantitative Update: Global Markets 2016 ranked Natixis Global Asset Management, S.A. as the 16th largest asset manager in the world based on assets under management ($870.3 billion) as of December 31, 2015.
- 2 Net asset value as of June 30, 2017. Assets under management (AUM) may include assets for which non-regulatory AUM services are provided. Non-regulatory AUM includes assets which do not fall within the SEC’s definition of ‘regulatory AUM’ in Form ADV, Part 1.
- 3 A division of NGAM Advisors, L.P.
- 4 A brand of DNCA Finance.
- 5 A subsidiary of Natixis Asset Management.
- 6 A brand of Natixis Asset Management and Natixis Asset Management Asia Limited, based in Singapore and Paris.
- 7 A brand of Natixis Asset Management.
Press Relations, Natixis
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