Countries in Europe are implementing financial regulation together, but that doesn’t mean that investors have a homogeneous identity. Our latest European Fund Distribution: Consumer Insights report finds that investors across Europe have few common investing characteristics. Outside the UK, banks are the largest distribution stream and most investors regard banks as their main ‘financial partner’. However, that’s where similarities end.
One major factor that influences investment landscapes is pensions regulation. The degree of workplace pension use heavily impacts how people invest and where they go to do so. Investors in countries with high levels of mandatory workplace pension saving – such as the Netherlands, Sweden, Switzerland and the UK – are more likely to regard a pension provider as their ‘financial partner’.
State pensions have a similar impact: investors in counties with strong state pension provision tend to focus their investments on areas other than retirement. Many French investors focus on inheritance accumulation with assurance vie life insurance products. Italian investors instead favour regular income and therefore show a preference for holding government bonds.
Swedish and Dutch investors are more self-directed than the European average, are more likely to use platforms as an investment channel and invest through mobile devices. Many access their pension funds online or through platforms.
There is no ‘typical’ European investor – each market has its own characteristics with several different routes to market. For more information on our European Fund Distribution research, please contact jeanluc-dejonge@platforum.co.uk.