Wealth Poll

There isn’t an organization in the world that has not been affected by COVID-19. But every organization and industry has been affected differently. The same can definitely be said for investment firms, who must also be concerned about the mindset of their investors;  without a keen understanding of the investor mindset, it’s hard for them to develop a strategy for 2021.

That’s why Pearl-Plaza is releasing the results of its 2020 Wealth Poll, to give investment firms a glimpse into the minds of their clients—and how they’re feeling about the year to come. Today, we’ll take a closer look at what investors are saying specifically about the effects of COVID-19.

What is the 2020 Wealth Poll?

Before we dive into specific takeaways and data, let us give you a few more details about the 2020 Wealth Poll itself. For this study, we surveyed 1,212 investors with over $100,000 of privately held assets. This group included 790 Mass Affluent Investors

($100,000 to less than $1,000,000 in investable assets), 400 High Net Worth Investors ($1,000,000 to less than $10,000,000 in investable assets), and 22 Ultra-High Net Worth Investors ($10,000,000 or more in investable assets). 

Our goal was to understand how the unsettled market has affected affluent investors as well as how they feel about their client experience, and where opportunities may lie for investment firms to improve and expand business. In our survey, we asked a series of questions specifically about the Coronavirus and were able to unearth four key takeaways. Let’s dive in!

Four Takeaways on the Investor Mindset

1. Investors Don’t Expect a Full Recovery Until Late 2021
2. Investors Are Staying the Course
3. Most Have Funds but Many Don’t Plan to Invest
4. Investment Firms Learned the Lessons of 2010

Key Takeaway #1: Investors Don’t Expect a Full Recovery Until Late 2021

After a decade of success, COVID-19 has cast a shadow of uncertainty over the global economy—and affluent investors aren’t completely sure what to expect. In fact, an overwhelming majority (64%) said they expect the next twelve months to be volatile. 

Regardless of how investors feel, financial services firms and advisors must be prepared to guide investors through the ever-changing market over the next 12 months!

Key Takeaway #2: Investors Stay the Course

Despite investors’ uncertainty concerning the market, 85% of investors say their risk preference has not shifted because of the pandemic. In fact, our results for pre-pandemic risk preference were almost the same as our post-pandemic results.

Key Takeaway #3: Most Have Funds but Many Don’t Plan to Invest

For as many affluent investors who plan to stay flat in 2020, the same amount plan to invest more in their portfolio, despite the fact that 78% report that they have available funds.

From this same question, we also were able to arrive at the conclusion that affluent investors were more likely to invest if they are self-directed investors, believe their investment expertise is higher than average,  or do not work with a dedicated financial advisor.

Key Takeaway #4: Investment Firms Learned the Lessons of 2010

Remember 2010 and the burst of the housing bubble which wreaked havoc on the markets and the economy? In 2010, investors across the board were not happy with how firms responded to the financial crisis. Since that time, investment firms have made significant progress in delivering to their clients.

The proof? Investor satisfaction has held steady the highs achieved during the market’s long bull run even in the midst of the pandemic.  Financial planning, more proactive advice, and better online tools have made investors much happier with the response to the current crisis.

Want to see more data from our 2020 Wealth Poll? You can check out the infographic on the effects of COVID-19 here.