July 2012
Decoding
Global Investment
Attitudes
Investment decisions and matters of
personal wealth vary by gender, age
and geographic region
• Globally, men are 36% more active than women with investments
• Women are 25% more likely than men to rely on friends and family for advice
on personal finance matters
• Investors rely more on themselves when making investment decisions than on
any other information source
• Investors in Asia-Pacific and the Middle East are the youngest;
North Americans are oldest
•
Online banking rivals physical branch banking for investment services in most regions
As global economies continue to focus
on ways to accelerate economic growth,
consumers too are looking for ways to
bolster their budgets. Nielsen’s Global
Consumer Confidence Survey shows that
over the past year, consumers around
the world have increased their saving
strategies. Half of online respondents
worldwide say they are putting spare cash
into savings—an increase of 11 percent
since May 2011 and nearly one-fourth
(23%) indicate they are investing in stocks
and mutual funds—a year-over-year rise of
35 percent.
With an increased appetite for savings
and investments, Nielsen takes an indepth look at the profile of the investor
consumer. What is the optimal age for
investing, and how does this differ by
geographic region? How do investment
decisions change with maturity? Are
women more risk averse than men
and how much risk is too much? What
information sources are most reliable
and which channels are emerging as
credible transaction centers?
New findings from a Nielsen online
survey of respondents from 56 countries
around the world provide insights
to better understand the consumer
mindset on investment strategies and
the emerging opportunities across both
the developed and developing economic
landscape. The study is based on online
consumers who have indicated they
currently use investment services, which
include stocks, mutual funds, bonds,
certificate of deposit, local and overseas
stocks, derivative tools and foreign
currency for investment purposes.
Copyright © 2012 The Nielsen Company.
2
Gender disparity is greater in developed economies
Men are more active investors than women
In Europe and
North America,
male investors are
54 percent and 50
percent more active
than women, while
in Asia-Pacific and
the Middle East, the
difference between
genders is less...
When it comes to investments, one-third
of global online respondents say they are
investing on different asset classes. The
Asia-Pacific region is the most developed
with nearly half (48%) of consumers
using investment services compared with
North Americans (27%), Middle Easterners
(21%), Europeans (16%) and Latin
Americans (13%).
The results correlate with the strong
saving mindset among Asian consumers
who place a high priority on saving and
investing. Two-thirds of Asian consumers
report putting spare cash into savings—
double the amount reported in other
regions, and 38 percent invest in stocks/
mutual funds, which is more than four
times reported investment activity in
other parts of the world, according to
Nielsen’s Q1 2012 Global Consumer
Confidence Survey.
Overall, men are more active than women
when it comes to investments, but marked
regional differences reveal that there
is a greater disparity between men and
women in the more developed regions of
the world. In Europe and North America,
male investors are 54 percent and 50
percent more active than women, while
in Asia-Pacific and the Middle East, the
3
Copyright © 2012 The Nielsen Company.
% of Population that Have Investments
TOTAL
MALE
FEMALE
DISPARITY
GLOBAL
AVERAGE
33
38
28
36
ASIAPACIFIC
48
51
44
16
EUROPE
16
20
13
54
MIDDLE EAST
/AFRICA
21
22
17
29
LATIN
AMERICA
13
16
10
60
NORTH
AMERICA
27
33
22
50
Source: Nielsen Global Survey of Investment Attitudes, Q1 2012
difference between genders is less severe
at 16 percent and 29 percent, respectively.
Women represent a significant
opportunity for the investment
community given their growing wealth
accumulation and the natural increase
of women in the workforce, especially in
emerging markets.
Stocks are tops for investment portfolio
When it comes to investing, stocks are
favored over other investment options,
such as mutual funds, precious metals,
bonds, structured investment products,
foreign currency or derivatives in all
regions except Latin America, where
mutual funds are preferred. In Latin
America, the results are likely due to
product availability rather than product
knowledge.
Investing in stocks is most prevalent
in Asia-Pacific, where nearly threequarters of respondents put confidence
in this asset class. More than half
have investment on mutual fund/
unit trust, roughly one-third invest in
precious metals, bonds and structured
investment products and one-fourth
invest in derivatives and foreign
currency. The other regions present a
more balanced investment portfolio,
spreading the wealth more evenly
across product offerings.
Males tend to have a greater focus on
stock investments than females across
all regions except in North America,
where women are the stronger stock
investors. The North American gender
split for stocks is 65 percent male and
71 percent female.
Asia-Pacific consumers tend to have a
higher risk tolerance level as compared
to respondents in the other regions.
More than half (57%) could accept
fluctuations greater than 10 percent
vs. 45 percent in Europe, 41 percent
in Middle East/Africa, 38 percent in
Latin America and 50 percent in North
America. Asia-Pacific consumers also
allocate more of their monthly budget
on wealth accumulation and have a
more diversified investment product
portfolio (2.9 products), as compared
with consumers from other regions;
Europe: 1.9, Middle East/Africa: 2.4,
Latin America: 1.9, North America: 2.4.
Investment Product Portfolio
ASIA-PACIFIC
EUROPE
73
Stock
Mutual Fund/
Unit Trust
Gold/Silver/
Precious Metals
Mutual Fund/
Unit Trust
Gold/Silver/
Precious Metals
54
38
Foreign Currency
Foreign Currency
23
36
Bond
Structured
Investment Products
Bond
27
15
18
22
7
17
Other
LATIN AMERICA
MIDDLE EAST/AFRICA
29
Stock
Mutual Fund/
Unit Trust
Gold/Silver/
Precious Metals
20
Derivatives
5
Other
44
Structured
Investment Products
34
Derivatives
49
Stock
40
14
Foreign Currency
Stock
43
Mutual Fund/
Unit Trust
Gold/Silver/
Precious Metals
41
41
Foreign Currency
27
Bond 13
34
31
Bond
Structured
Investment Products
Structured
Investment Products
27
Derivatives 13
21
Derivatives 10
24
Other
Other
15
NORTH AMERICA
67
Stock
Mutual Fund/
Unit Trust
Gold/Silver/
Precious Metals
Foreign Currency
57
20
14
Bond
30
Structured
Investment Products
29
Derivatives 8
Other 12
Source: Nielsen Global Survey of Investment Attitudes, Q1 2012
Copyright © 2012 The Nielsen Company.
4
Self reliance trumps other information sources
Matters of finance are personal business
and respondents around the world rely
more on themselves when it comes to
making investment decisions than they do
any other information source. Roughly half
of respondents in every region say they
do not trust anyone else with decisions
regarding personal finance and wealth
matters. Middle Easterners and Europeans
are the most self-reliant with 55 percent
and 54 percent, respectively, staying in
control.
Using a financial planner is preferred by
one-in-five global respondents, with North
Americans (23%) and Asians (21%) the
most reliant on professional advice. Middle
Easterners and Latin Americans would
rather consult with friends, relatives and
colleagues than seek monetary guidance
outside their inner circle. Respondents in
these regions report the lowest incidence
of using a financial planner at 12 percent
and 16 percent, respectively.
(21%), Asia-Pacific (19%) and Middle
East (18%) rely on friendly word-ofmouth counsel. Women, however, are
more reliant on friendly advice than
men, particularly in Europe and North
America, where women are 43 percent
and 29 percent, respectively, more likely
than men to consult with family and
friends.
North Americans and Europeans are the
least likely to seek advice from friends,
relatives and colleagues at 16 percent and
17 percent, respectively, while roughly 20
percent of respondents in Latin America
Tips from TV, radio and Internet
commentators and impulse investment
decision making are the least favored
information sources when it comes to
money matters.
Which best describes your decisions on personal finance or wealth matters?
I rely on myself only and I don’t trust anybody else
I rely on my financial planner and adviser in my personal finance decision
I rely on the investment tips from commentators, experts or spokesperson on TV/radio/Internet
I rely on my friends, relatives and colleagues for advice on personal finance matters
I usually make my investment decision on an impulse basis without a good knowledge about personal finance issues
4%
4%
17%
19%
47%
ASIAPACIFIC
9%
5%
54%
EUROPE
18%
8%
55%
MIDDLE EAST/
AFRICA
17%
12%
21%
3%
5%
4%
16%
18%
21%
43%
LATIN
AMERICA
51%
15%
16%
Source: Nielsen Global Survey of Investment Attitudes, Q1 2012
5
Copyright © 2012 The Nielsen Company.
10%
6%
NORTH
AMERICA
49%
23%
GLOBAL
AVERAGE
9%
20%
Men like risk; women are more cautious
I can accept considerable investment volatility (+/- 15% or above)
Males are generally more aggressive than
women in their investment attitude. They
are more aggressive in wealth acceleration
and have a greater risk appetite in their
investment strategies. One-quarter of
males in Asia-Pacific, Europe and Middle
East regions are willing to accept a 15–20
percent loss in their investment decisions.
ASIAPACIFIC
Perhaps due to the rise in working
females who are affluent and financially
independent in the Asia-Pacific region,
their risk appetite is at parity with males
in their investment decisions and are
willing to accept considerable investment
volatility (+/- 15% or above). The gender
disparity in the other regions is more
obvious.
TOTAL
25
24
27
LATIN
AMERICA
TOTAL
25
NORTH
AMERICA
TOTAL
22
TOTAL
EUROPE
Overall, respondents in the Middle East
and Latin America are most conservative
with investments decisions. One-third
of Middle Easterners and one-fourth of
Latin Americans say they would be very
concerned about any volatility.
MIDDLE EAST/
AFRICA
24
16
17
18
12
18
15
TOTAL
23
26
14
Source: Nielsen Global Survey of Investment Attitudes, Q1 2012
Which best describes your perception on investment risk?
GLOBAL AVERAGE
I would be very concerned about any volatility and will not accept any potential loss of principal
I am conservative, but can accept some minor fluctuations in my portfolio's value (+/-5%)
19%
I have a moderate investment attitude and accept that the potential for higher returns means accepting
fluctuations in my portfoloio's value and possible loss (+/-10%)
My main goal is long-term capital appreciation, I can accept considerable investment volatility (+/-15%)
17%
EUROPE
7%
18%
22%
MIDDLE EAST/
AFRICA
9%
15%
33%
29%
LATIN
AMERICA
9%
13%
26%
10%
17%
28%
I want my investments to grow and earn the highest possible return. I can accept posible loss of (+/-20%)
ASIAPACIFIC
7%
NORTH
AMERICA
7%
16%
4%
13%
22%
26%
31%
33%
18%
20%
34%
33%
36%
26%
Source: Nielsen Global Survey of Investment Attitudes, Q1 2012
Copyright © 2012 The Nielsen Company.
6
Aging and emotional vs. rational banking
The common belief is that the older
you are, the more informed and rational
you become—especially when it comes
to financial volatility and investment
decisions. However, Nielsen’s survey
findings reveal differences in the
demographic profile of investors in
different regions, where a noteworthy
share of investor consumers are found
among older consumers in North America,
Europe and Latin America.
In all regions, the core investor groups are
mid-lifers—or those between the ages of
30 and 39. These consumers are moving
toward a critical life stage where they are
getting married and having children. Due
to greater family obligations and higher
financial resources, mid-lifers tend to
have greater investment needs
than the other age groups.
The Asia-Pacific and Middle
Eastern markets present the
youngest profile of investor
consumers where nearly
four-in-ten (37% and 39%,
respectively) respondents
are between the ages of
21 and 29. Comparatively,
the wealth of the North
American population seems
to be staying with the more
mature groups as 42 percent of
investors are aged 50 and over.
Older consumers typically have
less family obligations and may have
more financial resources to invest.
Investors in Asia-Pacific and Middle East/Africa are relatively younger than North Americans
AGE
MIDDLE EAST/
AFRICA
ASIAPACIFIC
EUROPE
NORTH
AMERICA
LATIN
AMERICA
8%
5%
6%
2%
5%
39%
37%
16%
16%
23%
25%
36%
20%
24%
23%
14%
12%
20%
17%
18%
9%
6%
20%
20%
23%
3%
4%
19%
22%
10%
UNDER
20
21-29
30-39
40-49
50-59
60+
Source: Nielsen Global Survey of Investment Attitudes, Q1 2012
7
Copyright © 2012 The Nielsen Company.
4% 5%
10%
5%
Online banking rivals physical branch banking
While channel usage for investments is
strongly correlated with the maturity
of markets, online banking is marginally
ahead of the physical branch as a vibrant
channel for conducting investment
transactions. More respondents in AsiaPacific and North America who conducted
investment transactions in the last three
months say they used online banking as a
preferred channel choice.
In Asia-Pacific, 79 percent of online
respondents indicate they used online
banking for investment transactions,
compared to 73 percent who traveled
to a physical branch. Likewise, in North
America, 55 percent say they used online
banking, compared to 48 percent who
made a trip to the bank. Additionally,
more than one-quarter (26%) of global
respondents use the services of online
investment brokers or service providers.
With equity being a core component of
consumers’ investment portfolio and the
progression of technologies, the online
channel has become an important channel
for gaining up-to-date information and
making swift investment decisions,
particularly in Asia-Pacific.
Although some concerns may exist
about security, consumers are seeking
information through their mobile
platforms for their investment decisions.
The adoption of the mobile platform is
greater amongst the younger age groups.
As the level of smartphone penetration
accelerates, the mobile platform usage
for banking business is expected to grow
accordingly. The mobile platform is
becoming a vital tool for making swift
investment decisions and transactions
and capturing different investment
opportunities on-the-go.
Percent of channels used for investment transactions in the last three months
ASIA-PACIFIC
EUROPE
79
Online
73
Physical Bank
36
Mobile Phone
Financial Planner
59
Online
Physical Bank
60
Physical Bank
Phone (call center)
28
Online Investment Broker
Online
Mobile Phone
32
Phone (call center)
Financial Planner
MIDDLE EAST/AFRICA
36
Mobile Phone
Phone (call center)
35
Phone (call center)
Financial Planner
26
19
18
25
32
Phone (call center)
Online Investment Broker 11
17
Financial Planner
15
55
48
Physical Bank
Mobile Phone
Online Investment Broker
84
Mobile Phone
Online
67
58
NORTH AMERICA
55
Physical Bank
16
Online Investment Broker 12
21
Online
LATIN AMERICA
Online Investment Broker
Financial Planner
19
28
31
34
Source: Nielsen Global Survey of Investment Attitudes, Q1 2012
Copyright © 2012 The Nielsen Company.
8
Cash is king, but payments via plastics are catching on
While the usage of cash is very much
ingrained in many cultures around the
world where payment for goods and
services—either personal or business—is
immediate, as wealth accelerates for
consumers in emerging markets and the
availability of payment terminals increase,
we will see a greater level of acceptance of
electronic payment methods over cash.
Respondents in Asia-Pacific are more
receptive to using credit cards (59%)
compared to other regions, and North
Americans showed the highest propensity
to use debit cards (63%). Middle
Easterners are the least receptive to using
either credit (29%) or debit (26%) cards as
a preferred payment source.
Credit card usage is particularly high in
some mature Asia-Pacific markets like
Hong Kong (76%) and Singapore (62%).
But while consumers in these mature
markets have a high credit card usage,
most treat credit cards as a cashless
payment tool for convenience and repay
the debts in full every month.
Top 10
Credit Card Using Markets
9
What is your repayment behavior across all credit cards in the last three months?
2% 1%
1%
9%
7%
15%
16%
ASIAPACIFIC
MIDDLE EAST
/AFRICA
EUROPE
10%
65%
75%
1%
11%
6%
16%
NORTH
AMERICA
LATIN
AMERICA
15%
53%
1%
10%
14%
18%
GLOBAL
AVERAGE
15%
68%
Repay all my credit cards in full each month
Repay some of the credit cards in full each month
Repay only the minimum required each month
Repay less than the minimum requirement each month
Repay more than the minimum requirement each month
Source: Nielsen Global Survey of Investment Attitudes, Q1 2012
ASIA-PACIFIC
EUROPE
Top 10
Repay In Full Each Month
MIDDLE EAST/AFRICA
LATIN AMERICA
Top 10
Repay Only Minimum Each Month
1. Israel
84%
1. Taiwan
89%
1. Colombia
51%
2. Hong Kong
76%
2. Austria
88%
2. South Africa
28%
3. France
75%
3. Japan
87%
3. Hungary
26%
4. Turkey
75%
4. South Korea
85%
4. Poland
26%
5. China
70%
5. Hong Kong
84%
5. Egypt
26%
6. South Korea
70%
6. Denmark
81%
6. Ukraine
25%
7. Japan
64%
7. Singapore
80%
7. Thailand
24%
8. Singapore
62%
8. Germany
78%
8. Vietnam
24%
9. Argentina
61%
9. France
78%
9. Venezuela
24%
10. Croatia
60%
10. Netherlands
78%
10. Saudi Arabia
23%
Copyright © 2012 The Nielsen Company.
21%
16%
54%
14%
60%
3%
6%
AS
IA
EU PAC
RO IF
M PE IC
ID
D
LA LE
TI EA
N S
NO AM T/A
RT ER FRI
GL H A ICA CA
O M
BA ER
LL IC
Y
A
Cash is king when it comes to how
consumers around the world prefer to pay
for general shopping, dining, traveling or
entertainment expenses, but more than
half of global respondents indicate they
use credit cards and 43 percent use debit
cards as a common payment method.
Global usage of electronic wallets and
checks are lowest at 15 percent and 10
percent, respectively.
Countries in this study
Argentina
Australia
Austria
Belgium
Brazil
Canada
China
Chile
Colombia
Croatia
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Indonesia
Ireland
Israel
Italy
Japan
Latvia
Lithuania
Malaysia
Mexico
Netherlands
New Zealand
Norway
Pakistan
Peru
Philippines
Poland
Portugal
Romania
Russia
Saudi Arabia
Singapore
About the Nielsen Global Survey
About Nielsen
The Nielsen Global Survey of Investment
Attitudes was conducted February
10–27, 2012 and polled more than 28,000
consumers in 56 countries throughout
Asia-Pacific, Europe, Latin America, the
Middle East, Africa and North America.
The sample has quotas based on age
and sex for each country based on their
Internet users, and is weighted to be
representative of Internet consumers
and has a maximum margin of error of
±0.6%. This Nielsen survey is based on
the behavior of respondents with online
access only. Internet penetration rates
vary by country. Nielsen uses a minimum
reporting standard of 60 percent Internet
penetration or 10M online population
for survey inclusion. The Nielsen Global
Survey, which includes the Global
Consumer Confidence Survey, was
established in 2005.
Nielsen Holdings N.V. (NYSE: NLSN) is
a global information and measurement
company with leading market positions
in marketing and consumer information,
television and other media measurement,
online intelligence, mobile measurement,
trade shows and related properties.
Nielsen has a presence in approximately
100 countries, with headquarters in New
York, USA and Diemen, the Netherlands.
South Africa
South Korea
Spain
Sweden
Switzerland
Taiwan
Thailand
Turkey
United Arab Emirates
United Kingdom
Ukraine
United States
Venezuela
Vietnam
For more information, visit
www.nielsen.com.
Copyright © 2012 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are
trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service
names are trademarks or registered trademarks
of their respective companies. 12/5171
10