UK Consumer Savers & Investors Market Report 2020 - Stock Market Values Cut and Reduced Dividend Payments in Wake of COVID-19 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "UK Consumer Savers & Investors Market Report 2020" report has been added to ResearchAndMarkets.com's offering.

At the end of 2019, UK households collectively held 3.7 trillion in non-pension financial assets, with their accumulated wealth having risen by almost 6% over the year. Consumers invested 33.5 billion net into non-pension financial assets in 2019, 9% more than in 2018, but only investments in saving deposits and life insurance and endowments increased. Given Brexit and political uncertainty, it seems consumers retreated to the safety of cash deposits (even if the returns are minimal) and longer-term investments (e.g. long-term investments that that ride out shift-term market fluctuations). As a result, volume sales of riskier investment products (like stocks and shares ISAs, bonds and funds) declined by 16% in 2019 as the political uncertainty with regards to Brexit and the election depressed sales.

These findings come from the report "Consumer Savers and Investors 2020". This market data report considers the market for consumer savings and investments. The central focus of this report is the types of savings and investment products consumers own, how much they are saving and investing and the environmental framework in which savings and investments are made. It looks at the size and structure of the market, recent trends and the future.

The report shows that key factors impacting on the market include COVID-19, which has cut stock market values, reduced dividend payments and caused a large outflow of investment from shares and funds, and new legislative and regulatory changes designed to improve consumer access to advice and guidance and improve the operation of investment services.

COVID-19, along with the uncertainty surrounding the final Brexit trade deal make it impossible to make any meaningful forecasts for the savings and investment industry in the coming years. On top of these more existential risks are serious downside risks inherent in a trade war between China and the US and possible restrictions to global trade, which have already had negative effects on stock markets worldwide.

Key Topics Covered:

1. EXECUTIVE SUMMARY

• A market with 3.7 trillion invested
• 2019 proved a difficult year for riskier assets
• A diverse market
• A market-driven by economic, psychological and regulatory factors
• Distribution patterns vary by asset
• A future which is impossible to predict
• Introduction

2. MARKET STRUCTURE

• Almost 30,000 businesses

3. MARKET DEVELOPMENTS AND DRIVERS

• Covid-19
• Almost all households have some financial assets, but far fewer take risks
• 60% of households have net financial wealth of less than 12,500
• Too many consumers take decisions in the dark, so often make mistakes
• The rise of app-based investing and online investment platforms
• The retail financial advice environment is re-shaped by legislation
• FCA seeks to reform the Asset Management Market
• FCA seeks to reform the fund platform market
• Improved information in the bank account sector

4. DISTRIBUTION

• Overview of the distribution process
• Bond, SCARP, ISA and care insurance buyers the most likely to seek advice
• Care, bonds, SCARPS and ISAs the most likely to be sold by intermediaries
• A detailed view
• Savings product, in general, go direct

5. THE KEY PLAYERS

• The largest insurance companies offering investment products/services
• Largest investment managers
• Largest closed-end fund managers
• Big Five Banks dominate the savings market

6. MARKET SIZE AND TRENDS

• Consumers have 3.7 trillion invested
• Around 35 billion invested into National Savings
• Consumers have 140 billion available to invest
• Around 34bn invested into non-pension assets
• Almost 490,000 investment products sold in 2019
• Major falls in new fund sales

7. THE FUTURE

• The Brexit unknown
• A growing challenge to investment managers
• New technology will shape the market

8. ASSOCIATIONS

Companies Mentioned

• Aegon
• Aviva Plc
• Black Rock Group Ltd
• Canada Life Limited
• Columbia Threadneedle Investments
• Countrywide Assured Plc
• Cova Life Limited
• Fidelity International
• HSBC Bank
• Invesco
• J P Morgan Asset management
• Legal & General Group Plc
• Liverpool Victoria
• Lloyds Banking Group
• M & G Prudential
• Phoenix Life group
• Pinnacle Insurance Plc
• Quilter plc
• Royal London Group
• Sanlam Life & Pensions UK Limited
• Schroder Investment Management Limited
• St James's Place Wealth Management
• Standard Life Aberdeen PLC
• Sun Life Assurance Company of Canada (U.K.) Limited
• The Equitable Life Assurance Society
• The National Farmers' Union Mutual Insurance Society Limited
• UBS Group
• Unum Ltd
• Zurich Insurance Group

For more information about this report visit https://www.researchandmarkets.com/r/bvyt0l

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