Majority of Investors Believe Investing Has
Become More Challenging
Appetite for Active Management and Financial
Education Strong
Investor Satisfaction with Advisors High
Janus Henderson Investors today released the findings of its
Investor Survey: Insights for a Brighter Future, which seeks
to better understand how individual investors are navigating the
ever-changing market environment. The results reveal the current
political landscape is a significant source of anxiety, as 49% of
investors surveyed are very concerned about the impact the 2024
U.S. presidential election will have on their finances; surpassing
more immediate developments including persistent inflation (35%),
risk of recession (29%), rising interest rates (27%), and poor
stock market performance (20%).
The survey was conducted among 1,000 mass affluent and
high-net-worth investors with $250,000 or more in investable assets
to understand their mindset amid a challenging political climate,
volatile market, and unsettled economic environment.1
On the eve of a potentially tumultuous election year against
uncertain interest rates and economic backdrop, investors are
naturally fearful. These fears run headlong into what seven out of
10 investors believe is an increasingly challenging market. Given
this uncertainty, it is perhaps not surprising that just as many
investors feel anxious about their finances (34%) as feel very
confident in achieving their goals (36%).
Notably, older investors are more concerned about the election
than younger investors. Nearly 7 in 10 (69%) members of the Silent
Generation (ages 75+) are very concerned about the 2024 US
Presidential election compared to just 37% of Millennials (ages
25-40).
“Despite investors’ concern about the 2024 U.S. Presidential
election, results haven’t historically been a reason to exit the
capital markets,” said Matt Sommer, Head of Specialist Consulting
Group at Janus Henderson Investors. “In fact, looking back at
S&P 500 returns from 1937 through 2022, the average annual
return was 9.9% in presidential election years, and 12.5% in
nonelection years.”
Investors Navigating Challenging Markets with Active
Management, Continuous Learning
With 71% of investors reporting that investing has become more
challenging over the past few years and nearly as many (61%)
indicating that the cost of living is rising faster than their
income and investments, demand for active management and financial
education is strong.
Among respondents who own mutual funds or ETFs, 66% want active
funds in their portfolio – with 29% preferring mainly active funds
and 37% preferring an equal mix of active and passive funds. Less
than one-in-five investors (17%) prefer mainly passive funds, 12%
have no preference, and 4% were unsure. The preference for active
management is associated with having a financial advisor, as 34% of
investors with an advisor prefer mainly active funds compared to
18% of investors without a financial advisor.
“The active versus passive discussion has evolved beyond an
either-or decision for the benefit of all investors,” added Sommer.
“With the prospect of higher-for-longer interest rates casting a
shadow over future economic growth, investors are increasingly
turning toward active management to mitigate risk in their
portfolios and differentiate between good and bad companies as
higher capital costs create new competitive challenges.”
Across all generations, investors’ appetite for improving their
financial know-how is strong, as 86% of investors are very
interested or somewhat interested in increasing their financial
knowledge. A desire to learn was particularly robust among younger
investors – 96% of both Millennials and Gen-Xers express meaningful
interest in improving their financial education.
Financial Advisors Delivering for Clients Near and Far, From
in Room to on Zoom
Among investors working with a financial advisor, 65% are very
satisfied with the quality of the relationship, 33% are somewhat
satisfied, and just 2% are dissatisfied. Further, those working
with an advisor are more likely to be very satisfied with their
financial situation (52%) than those without an advisor (40%).
The primary traits of financial advisors for clients who report
they are very satisfied with the relationship include:
- Provides peace of mind that I'm on track to reach my goals
(69%)
- Cares about me as a person, beyond just my financial situation
(61%)
- Provides financial education / makes me smarter (56%)
With advances in technology reshaping advisor-client
communications, the survey found no relationship between
respondents’ high levels of satisfaction and residing near their
financial advisor (vs. out-of-state). In fact, while most investors
(70%) report their advisor is based in the same state, 73% say they
would be comfortable working with an advisor that is based out of
state.
Among the ways in which investors have communicated with their
advisor over the past six months, telephone (68%), in-person (54%)
and email (53%) were the most common methods. Just 28% of investors
report interacting with their advisor by video conference, however,
the majority (52%) say they would be comfortable using video
conference technology to speak with their financial advisor.
For Millennials, nearly half (49%) are not comfortable
interacting with their financial advisor by telephone.
“As video conferencing becomes more entrenched in our everyday
lives, geographical barriers are being diminished, providing
advisors with an opportunity to tap into a much broader circle of
friends, family members, entrepreneurs, and successful
professionals as potential clients or referral sources,” said
Sommer. “Investing in technology that delivers a seamless and
frictionless experience for clients and prospects will be pivotal
for future growth.”
To download a copy of Janus Henderson Investors’ Investor
Survey: Insights for a Brighter Future report, click here.
-ends-
_________________________ 1 The research
was conducted on behalf of Janus Henderson by 8 Acre Perspective,
an independent marketing research firm.
Notes to editors
About the Survey
Janus Henderson Investors’ Investor Insights Survey was
conducted by 8 Acre Perspective among 1,000 investors nationwide
with $250,000 or more in investable assets. The survey was
conducted from July to August in 2023.
About Janus Henderson
Janus Henderson Group is a leading global active asset manager
dedicated to helping clients define and achieve superior financial
outcomes through differentiated insights, disciplined investments,
and world-class service.
As of September 30, 2023, Janus Henderson had approximately
US$308.3 billion in assets under management, more than 2,000
employees, and offices in 24 cities worldwide. Headquartered in
London, the company is listed on the NYSE and ASX.
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