According to TNS’ Investor Confidence Index, there was a significant increase in confidence among affluent American investors in March 2009.
The Investor Confidence Index is now at 14.0, and shows a rebound to levels exhibited in May, 2008.
This follows on the heels of the Index of October 2008 of 13.0, the lowest point since the Index launched in 2001. While still well below the levels from 2007 (16.0), it does represent movement towards a more optimistic viewpoint.
The Investor Confidence Index is part of TNS Affluent Market Research Program (AMRP) and was conducted online by TNS from March 24-31, 2009. Respondents had a total net worth, not including their personal residences, of $500,000 or more as of May 2008.
The index gauges respondents’ outlook on multiple financial measures over a six-month period.
Despite US employment anxieties, affluent respondents expect improvements in their households’ overall financial situation (up to 79 percent from 69 percent in October 2008) and household investments (up to 69 percent from 52 percent in October).
The rebound clearly coincides with the stock market recovery and signals renewed optimism in a group which has suffered significant losses since May 2008. 86 percent of these affluent responders have experienced a decrease in the overall value of their investments in the past six months; three in four of them have experienced a 25 percent or more reduction in the value of their investments.
According to Ellen Sills-Levy, Levy Senior Vice President, Investment Research Services, TNS,
“Clearly the March stock market recovery was a major influence on the index as well as the administration’s recent economic measures. The market always responds worse to uncertainty than to anything definitive – positive or negative. These results show us that the affluent Americans are beginning to sense a shift in the market.”
Shifting Market Signifies Need for a Change
Market turmoil led to increased movement of assets among providers in October 2008 where there was a significant increase in this behavior from 17% in May 2008 to 23%.
While that rate remains flat at 22% in March 2009, it is still high compared to historical levels suggesting investors are still on the lookout for better offers or products. Planned switching in the next 12 months also remains high but level from October (21%) to March (19%).
About the TNS Affluent Market Research Program:
AMRP has been providing the financial services community with critical data and insights since 1981. The study is based on a representative national sample of over 4,269 households with a net worth of $500,000 or more, excluding primary residence.
The latest TNS Investor Confidence Index polled 2,382 respondents TNS between March 24-31st, 2009. Respondents had a total net worth, not including their personal residences, of $500,000 or more as of May 2008.
TNS is a leading provider of market data for the financial services industry. In addition to AMRP, TNS offers extensive research on small business banking and consumer credit card usage. These programs are part of a global inventory of 43 syndicated research programs.
TNS, who recently merged with Research International, is the world’s largest custom research agency delivering actionable insights and research-based business advice to its clients so they can make more effective business decisions.
TNS offers comprehensive industry knowledge within the Consumer, Technology, Finance, Automotive and Political & Social sectors, supported by a unique product offering that stretches across the entire range of marketing and business issues, specialising in product development & innovation, brand & communication, stakeholder management, retail & shopper, and qualitative research.
Delivering best-in-class service across more than 70 countries, TNS is part of Kantar, the world’s largest research, insight and consultancy network.
Please visit www.tns-us.com for more information.
The Kantar Group
The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies – including the recently-acquired TNS – the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community.
Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle.
The group’s services are employed by over half of the Fortune Top 500 companies. The Kantar Group is a wholly-owned subsidiary of WPP Group plc.
For further information, please visit www.kantargrouptns.com
New York - April 2009