FOREWORD BY ANDREW TOMLINSON, CHIEF MARKETING OFFICER, CALASTONE
During the early days of Covid-19 we witnessed significant turbulence in the financial markets. Many retail investors saw the value of their pension and investment portfolios crash almost overnight, potentially impacting their longer term confidence in investing. In a market where interest rates continue to sit at all-time lows, how will the retail investor adapt and where will they go to find inflation beating returns?
This led us to commission this global study, looking at how investor behaviours and attitudes were changing during the initial pandemic and in the immediate aftermath. We repeated this same study earlier in 2021, over a year into the pandemic, as the world settled into this new normal.
In the initial 2020 study, we saw that the greatest changes were particularly marked amongst the younger generations, who increasingly looked to digital and low-cost channels to manage their investments. Since then, the markets have picked up and in our 2021 analysis, the changes we saw last year have become pervasive across all generations. The appetite to invest in new ways and through non-traditional providers has seen significant growth, from Millennials to Gen X to Baby Boomers, alongside a much more bullish view of the markets.
The asset management industry has adapted well so far to the upheaval Covid caused, with investors finding the investment process easier and more efficient than ever before. But our 2021 research shows that there is still work to be done if the industry is to retain its competitive edge.
I hope that you enjoy this latest research report from Calastone.