Uncertainty about the future in light of the pandemic is leading to increased investment across generations according to new research from UK-based funds network Calastone.
According to its Investor Behaviours and Attitude 2021 white paper, Calastone says 32 per cent in a global survey of 1800 investors said they were more likely to invest in light of the current Covid-19 situation. The majority, 46 per cent, were unchanged in their outlook while only 19 per cent said they were less likely to invest.
An increase in investment activity has travelled across both generations and regions. Fifty-six per cent of millennials have made an active investment “post-wave”, up seven per cent from the 49 per cent who made an investment “pre-wave. In generation X the figure is up from 35 per cent to 52 per cent (+18 per cent) and with baby boomers the figure is up 11 per cent from 20 per cent to 31 per cent.
“It is well-established that uncertainty about the future increases our propensity to save for a rainy day,” the whitepaper states.” After a further year of economic damage inflicted by the pandemic, the picture has changed.”
Calastone puts the increase in investor sentiment down to three factors; pent-up demand, growing confidence in the economic outlook and an increased appreciation for financial security.
“Investors across age groups and geographic markets are also increasingly comfortable with investment products and digital channels,” the paper continues. “They are also more trusting of financial service providers.”
The positive sentiment was even more stark across the US, Australia and New Zealand; 68 per cent in the US say they invested post-wave, up 24 per cent from pre-wave, while New Zealand was up 21 per cent from 25 per cent to 46 per cent. Investment in Australia rose 20 per cent from 31 per cent to 51 per cent.
“Increases in willingness to invest were particularly notable in the US, Australia and New Zealand,” the whitepaper states.