Income investing tops search for European investors
A survey of over 4,800 investors across Europe, conducted by GfK on behalf of JP Morgan Asset Management, has found that two thirds want income, but that over half cannot explain the term ‘income investing’.
The results of the Search for Income survey suggest that there is a significant opportunity for financial advisers across Europe to provide the education and insight to benefit investors, said Massimo Greco, head of European Funds at JP Morgan AM.
Results from the survey can be reviewed via an interactive portal – http://am.jpmorgan.co.uk/search-for-income/ – which also allows results to be viewed by individual market.
More broadly, the results suggest the following:
- Across Europe, more than half of investors (54%) are seeking a combination of income and growth. One third (33%) are focused on seeking growth, versus just 13% that are focused on generating income. Focus on growth investing is more prevalent in the Netherlands, Sweden, UK and Belgium, whilst in Italy significantly more are focused on income investing. Germany, Spain and Switzerland are most likely to be investing for both outcomes.
- Investors in France, Germany and Switzerland have the most familiarity with income investing.
- Income from investments is important to Italian, Spanish and UK investors, with Spanish and UK investors also concerned about low yield environments. Dutch and Swedish investors are least concerned about this. Germans and Italians have some concerns that higher inflation will erode the real return on investments.
- Investors tend to favour equities and savings for current income investments, while mutual funds are popular in Germany, Italy, Netherlands and Sweden. Savings top the bill in Switzerland and the UK. France leads other markets on insurance savings plans.
- Investors in Italy, Sweden and the UK are most likely to re-invest income from investments whilst those in Belgium and Italy are open to new investments. French and Swiss investors are more likely to save the funds in cash. Conversely, more German and Swiss investors prefer to spend the income produced.
- Investors in France and Italy are most likely to have been approached by their financial advisers about income investing. Conversely, few advisers in Belgium, the Netherlands, Sweden and the UK are raising the topic of income investing with their clients.
- The level of understanding around income investing amongst investors who take full advice from their financial adviser varies from over 60% in France to less than 10% in Sweden.
The survey aggregates the views of 4,805 investors with a minimum of €20,000 in investable assets located in nine countries, including Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland and the UK.