Royal London’s Riley finds 80% of households do not invest in the stockmarket
Thursday, 15 November 2007
A survey by Riley, the individually insured investment from Royal London, has found that people are put off stockmarket investments through lack of knowledge or fear of falls in investment markets, with the majority preferring bank or building society savings or property investments.
The research, conducted by YouGov on behalf of Riley, asked over 2,000 households a range of questions about their finances. When asked where they saved most of their money, 61% stated bank or building society accounts while 7% said it was in property. In contrast only 3% put most of their money in the stockmarket, while just 20% said they had any investment at all in stocks and shares. Even when asked what they would do with a £100,000 windfall, only 4% would invest it in the stockmarket, while 39% would invest in property and 36% would put it in the bank.
Roger Edwards, Head of Marketing Development, commented:
"Recent stockmarket volatility, coupled with longer memories of the crash 20 years ago, have put people off investing in the stockmarket, yet research shows that medium to longer term investments in stocks and shares offers most potential for capital growth. IFAs have an extremely important role to play in encouraging people to invest for the longer-term in stocks and shares. And a product such as Riley, which allows access to potential stockmarket gains with flexible protection against possible falls, gives investors a useful alternative to holding money in deposit accounts."
Riley offers investors the opportunity for stockmarket gains with a flexible level of protection. The chosen protected amount is insured by putting part of the original investment into a fund which holds protection contracts provided by a leading investment bank. The remainder of the investment goes into a choice of two funds: the FTSE 350 Tracker Fund, managed by RLAM (Royal London Asset Management), or the FTSE 350 Managed Fund, managed by Andy Simpson at Schroders. IFAs can get information about Riley from their Scottish Life consultant or by going to www.thelifeofriley.co.uk
Note:
Investment returns may fluctuate and are not guaranteed. The price of units can go down as well as up.
Riley is a life insurance bond with a minimum investment of £10000.Investors may not get back the full amount of their investment.
The FTSE® trademark is jointly owned by the London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited under licence. "FTSE350" is a trademark of FTSE International Limited. The FTSE 350 Index is calculated by FTSE International Limited. FTSE International Limited does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. All copyright in the index values and constituent list vests in FTSE International Limited. The Royal London Mutual Insurance Society Limited has obtained full licence from FTSE International Limited to use such copyright in the creation of this product.
- ENDS -
For further information please contact:
Royal London
Alasdair Buchanan
Group Head of Communications
Tel: 0131 456 7133
Polhill Communications
Roger Edwards
Head of Marketing Development
Tel: 0131 456 7301
Jenette Perry
Tel: 020 7655 0530
Editor's Notes:
1 Who's behind Riley?
Scottish Life is a division of Royal London and markets products produced by Royal London. Scottish Life is responsible for the marketing, distribution and servicing of the Riley bond.
RLAM is the specialist asset management company within the Royal London Group. RLAM's clients include FTSE 250 companies, local authorities, universities and charities; wealth managers and other financial advisers. RLAM manages over £32.3bn of assets, employing more than 50 experience investment professions (as at 30 September 2007).
Schroders is a global asset management company with £137.7 billion under management as at 30 September 2007. Its clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors. Schroders applies its specialist asset management skills in serving the needs of its clients worldwide. With one of the largest networks of offices of any dedicated asset management company and over 250 portfolio managers and analysts covering all the major investment markets, Schroders offers its clients a comprehensive range of products and services. Further information about Schroders can be found at www.schroders.com
2Royal London Group, is a specialist financial service provider. Its businesses focus on those sectors of the market which value premium propositions, operating through a number of brands:
- Scottish Life – UK pensions market
- Bright Grey – UK protection market
- Scottish Life International – offshore investment markets
- RLAM – fund management
- RLAS – life and pensions administration
Royal London is one of the stronger life and pension companies in the UK, and has a strong track record for with-profits performance.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £32.9 billion. Group businesses serve around three million customers and employ 2,580 people (figures quoted are as at 30 September 2007).