M&G : first Investor Compass reveals investors remain confident despite market volatility

Leading savings and investment company M&G has today launched Investor Compass¹, a new research and insights series designed to track adviser and investor sentiment in an evolving financial landscape. Drawing on a survey of 500 UK investors and 150 financial advisers, the report examines how market volatility, investor behaviour and emerging technologies are influencing investment decisions, retirement confidence and adviser-client relationships.

The findings suggest investors remain relatively resilient despite ongoing market volatility and economic uncertainty. More than eight in 10 investors (83%) said they feel confident making investment decisions when markets are volatile, while the research also highlights the important role financial advice can play in helping people stay focused on their long-term goals during periods of uncertainty.

As part of the Investor Compass report, M&G has also launched the Investor Confidence Index² which brings together views on personal finances, investment markets and the wider economy to provide a snapshot of adviser and investor sentiment. The findings show investors recorded an overall confidence score of 50 out of 100, compared with 46 among financial advisers. Investors were most positive about their own personal finances, scoring 66, while advisers gave clients' personal finances a lower confidence score of 52 (see table one).

The Index suggests that while investors remain broadly positive about their own financial outlook, both investors and advisers are more cautious when it comes to wider economic and market conditions, reflecting ongoing uncertainty around geopolitics and the economy.

Clive Bolton, CEO of M&G Life, said: "Our research suggests investors remain more resilient than many might expect. Despite continued market volatility and economic uncertainty, most remain confident about making investment decisions and focused on their long-term goals.

"One of the clearest themes to emerge is the value of financial advice during periods of uncertainty. While investors may feel confident overall, periods of market volatility can still test decision-making and emotions. At those moments, advisers can help people maintain perspective, avoid reacting to short-term noise and stay focused on what they are ultimately trying to achieve.

"The research also reinforces the importance of long-term investing. Whether through financial advice or investment solutions designed to help navigate changing market conditions like PruFund, maintaining a long-term perspective remains one of the most important factors in achieving good outcomes."

Table one: M&G Investor Confidence Index²

Sentiment scale: 0 (negative outlook) - 100 (positive outlook)
Advisers' views on the economy and markets are their own, while their views on personal finances reflect their clients' financial position