NEW YORK, June 19, 2017 /PRNewswire/ -- According to
new research released today by Dreyfus, a pioneer in U.S.
investing, half of individual investors (49%) have indicated they
have yet to take any action to reevaluate their investment approach
in light of the possibility of a shifting investment landscape, as
we head into the eighth year of the economic recovery.
"As long-term risk/return expectations have shifted with an
increase in inflation, the rise of U.S. nationalism and record-low
volatility, investors would be well-served to reevaluate their
portfolios in light of changed circumstances to determine if they
will continue to meet their investment objectives," said
Mark Santero, Chief Executive
Officer, The Dreyfus Corporation, a BNY Mellon company.
The "Helping Meet Investor Challenges Study" surveyed 1,250
investors with $50,000 or more in
investable assets on their approach to investing. This is the first
release of survey data that explores all elements of the group's
investing lives, including engagement with investment
professionals, portfolio allocations and appetite for risk. The
study also surveyed 200 independent and institutionally-based
advisors regarding the investing relationship between advisors and
clients.
You can view the survey results, fact sheet and infographic
here:
https://im.bnymellon.com/us/en/intermediary/perspectives/dreyfus-investor-survey-brief.jsp
Older Investors Ignoring Past Market Precedents in Adjusting
Portfolios
Older investors have had an opportunity to weather a variety of
stock market highs, such as the bull markets from 1987-2000 and
2009 to the present, and lows, such as the savings and loan crisis
in the 1980s, the stock market crash in 1987 and most recently the
financial crisis of 2008. Yet, even with this past knowledge in the
rearview mirror, the survey reveals:
- Sixty-one percent of investors aged 55+ indicated they have not
or will not reevaluate their investment approach in today's
existing investing environment.
In comparison, younger investors who experienced the 2008 market
meltdown and who began their savings efforts in the earlier part of
their careers demonstrated a forward-thinking approach to
reevaluating their portfolios. This generation of investors between
the ages of 21 and 34 indicated the following:
- Sixty-five percent had already evaluated their investment
approach, compared to just 51% of those aged 35-54 and 39% of those
aged 55+.
- A greater percentage of younger investors between 21-34 (63%)
also indicated they had worked with an advisor in reevaluating
their investments, while only a third (38%) of those 55+ had
evaluated their investments with an advisor.
"Our survey revealed that younger investors have demonstrated in
greater numbers a more proactive approach to reassessing their
portfolios and seeking out their advisors for counsel, some of whom
might lack the historical market experience and accumulated wealth
of older investors," said Mark
Santero.
Mass Affluent Investors Slow to Take Action on Their
Portfolios
The survey also looked at the investment actions taken by mass
affluent investors, those who had investable income between
$250k and $2.5 million. The survey
found nearly half of this audience had work to do in reviewing
their portfolios and how more than a third had decided to do
nothing with their portfolios:
- Forty-three percent of the total mass affluent investor
audience had not reevaluated their investment approach in this new
investment environment.
- Thirty-nine percent of mass affluent investors working with an
advisor had not reevaluated their investment approach.
Investors Look to Advisors in Navigating the Way
Despite the last eight years of a U.S. bull market, uncertainty
is very much a reality in U.S. and global markets.
Yet a majority of investors remained on the sidelines, the
survey found:
- Six in ten investors (60%) without a financial advisor are most
likely to put off their plans to address today's market challenges,
with only one-quarter (24%) saying that they plan to address
challenges they face at some point in 2017.
- Seventeen percent said they don't have any plans to reevaluate
their investment approach.
Santero added, "We believe investors who don't work with a
professional advisor could greatly benefit from the insights an
advisor can provide in tailoring a goals-based approach for their
individual circumstances against today's investing environment of
uneven economic growth. Options might include diversifying their
U.S. exposure with global fixed income and equities or considering
dividend or alternative investing strategies."
Those individual investors who worked with an advisor had a
greater likelihood of adjusting their portfolios. The findings
revealed that:
- Almost three-quarters (65%) indicated they had reevaluated
their investment approach, compared to two in five (40%) who had
not worked with an advisor.
- Nearly three-quarters (73%) of advisors' clients changed their
approach as a result of advice.
***
Risks:
Equities are subject to market, market sector, market
liquidity, issuer, and investment style risks, to varying degrees.
There is no guarantee that dividend-paying companies will continue
to pay, or increase, their dividend. Bonds are subject to
interest-rate, credit, liquidity, call and market risks, to varying
degrees. Generally, all other factors being equal, bond prices are
inversely related to interest-rate changes and rate increases can
cause price declines. Investing in foreign denominated and/or
domiciled securities involves special risks, including changes
in currency exchange rates, political, economic, and social
instability, limited company information, differing auditing and
legal standards, and less market liquidity. These risks
generally are greater with emerging market countries.
Helping Meet Investor Challenges Study Methodology
Toluna International, on behalf of BNY Mellon Investment
Management, fielded the "Helping Meet Investor Challenges"
research. Toluna conducted the study online with 1,250 individual
investors age 21 or older with at least $50,000 in investable assets, along with 200
independent and institutionally-based financial advisors. It had a
±2.5% to 3.0% Margin of Error (MoE) at 95% confidence at the "All
Respondent" level and ±3.25% to 3.75% MoE at 95% confidence for
demographic, behavioral, attitudinal and other subgroups. No
data was requested or collected concerning specific investment,
banking, advisory or similar financial relationships with Bank of
New York Mellon or any other institution, organization, agency or
firm. All information was self-reported by study
participants.
About Dreyfus
Established in 1951, Dreyfus is among the pioneers of U.S.
mutual fund investing with $300
billion in assets under management (as of March 31, 2017). As part of BNY Mellon Investment
Management, Dreyfus enables U.S. retail investors to access mutual
funds through BNY Mellon's globally diversified investment
boutiques, with investment solutions spanning global, international
and domestic equity, fixed income, alternatives, retirement and
cash investment strategies.
Dreyfus has four principal businesses, each providing a unique
set of products and services to a diverse range of customer
segments. These businesses are:
- the Intermediary business, which distributes Dreyfus'
funds through broker-dealers;
- the Institutional Investor business, which distributes
investment solutions from select BNY Mellon investment boutiques to
institutional investors;
- the Cash Investment Strategies division, one of the
industry's leading institutional managers of money market
strategies;
- and Dreyfus Direct, a direct-to-consumer business which
enables clients to enjoy the convenience, safety, and financial
benefits of having their pay, Social Security, pension check or tax
refund directly deposited into their BNY Mellon/Dreyfus mutual fund
account.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of March 31, 2017, BNY Mellon had $30.6 trillion in assets under custody and/or
administration, and $1.7 trillion in
assets under management. BNY Mellon can act as a single point of
contact for clients looking to create, trade, hold, manage,
service, distribute or restructure investments. BNY Mellon is the
corporate brand of The Bank of New York Mellon Corporation (NYSE:
BK). Additional information is available on www.bnymellon.com.
Follow us on Twitter @BNYMellon or visit our newsroom at
www.bnymellon.com/newsroom for the latest company news.
This press release is qualified for issuance in the U.S. only
and is for informational purposes only. It does not constitute an
offer or solicitation of securities or investment services or an
endorsement thereof in any jurisdiction or in any circumstance in
which such offer or solicitation is unlawful or not authorized.
This press release is issued by Dreyfus to members of the financial
press and media and the information contained herein should not be
construed as investment advice. A BNY Mellon
Company.
Ben Tanner
212 635 8676
ben.tanner@bnymellon.com
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SOURCE BNY Mellon