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Customer Insights #2: Youth is not always wasted on the young

April 21st 2017

With all investments your capital is at risk and the value of your investments and the income deriving from it can rise as well as fall. Past performance is not a guide to future performance.

This article forms part of our periodic series where we will provide insights on the unique data we have from serving clients in 32 European countries

Given our reach across most of Europe and offering the three portfolio management styles in three currencies we constantly see incredibly interesting data and trends. This data has been growing rapidly over the last few months. In fact our app is one of the most used of its kind, reaching 40,000 downloads last week. The growing data that we look at is not only based on geographic segmentation, as we detailed in our previous post, but also increasing and additional metrics. As we are client-obsessed we constantly look at this data to ensure we are delivering personalised investment experiences to everyone. We also aim to share these metrics with you, our potential and existing clients, to help you understand not only what your fellow investors are doing but also continue to provide transparency in our services.

Youth is not always wasted on the young

While some experts claim that only digitally native millennials would be comfortable with our investment approach, we have in fact investors in almost in every age category imaginable. Our oldest client is almost 70 whilst our youngest is only 5 months old. It is true that the average age of our clients does fall squarely in the millennial cohort at 34 years, however we actually find this datapoint to be incredibly encouraging. Europe is renowned for its old demographics with wealth mostly concentrated within the Babyboomer generation. The UK has more 60 year olds than 16 year olds for example. Therefore the fact that younger investors are investing either for the first time or transitioning away from old incumbent services charging them high fees is incredibly encouraging.

Our oldest client is almost 70 whilst our youngest is only 5 months old.

It is important to note that the 34 years average also includes children that fall into “Young Investor Account” programme. For the uninitiated, we do not charge any investment management for anyone under the age of 18. Around 7% of all our accounts are currently young investors. Interestingly, we have found that Spain has the highest number of child accounts followed by Portugal and Ireland. Despite, or perhaps because of, all three of these countries faced economic challenges and banking crises, investors in these countries are clearly savvy in planning for and creating wealth for the next generation. Doing so outside of the traditional system. We are absolutely delighted with this data and will continue to do what we can to help this number grow. The graph below shows the average age across all the markets we serve. With Austria and Luxembourg falling on either end of the spectrum of the oldest and youngest average age.

Diversity: the art of thinking independently together

We love the fact that we serve such a culturally rich and diverse market as Europe. This means we see interesting cultural and geographic preferences in terms of the types of portfolios and number of portfolios people select.

We have wide differences in the number of accounts/portfolios per customer in our various markets. Belgian, Dutch and Hungarian clients tend to have almost twice as many goals as their German counterparts.

The most common portfolio type remains our starter portfolios, and we foresee this trend continuing. However, as we mentioned in our last post, Custom Portfolios and Investment plans, do serve our clients and one only has to look at Italy and France to see the demand for these services.

We hope this post and the data has been insightful in how similar and different investors are across the continent. We hope this has helped shaped your thinking in your investment portfolio. Whether it’s creating a first or multiple goals for your investment needs or creating that first child account for the next generation. We will continue to provide updates and insights into the various investment needs of our customers that we work hard to solve.