Survey: German private investors look optimistically into the future

– Higher security awareness as a consequence of the financial crisis / security and confidence are the most important factors when investing money

The sentiment among German private investors has brightened in the past months. In the meantime only one in five security holders expects share prices to fall, which is significantly less than in February. As a consequence of the financial market crisis, investors are now attaching more importance than before to the aspect security when investing money. For 86 percent this is by far the most important factor when making an investment decision. The yield rate is playing an increasingly lower role on the other hand. This emerged from a current representative survey, which TNS Infratest carries out quarterly on behalf of DZ BANK AG.

Number of pessimists falling, although security, confidence and financial solidarity is becoming more relevant for investors
Around three quarters of security holders currently assume that the German share price index will increase during the next six months or at least remain at the current level. Three months ago only 65 percent of those asked assumed this. The number of pessimists in particular has decreased considerably since February. Meanwhile, only 19 percent of those questioned believe that the DAX will fall. In February one in four German citizens expected lower share prices. Furthermore, the number of security holders that expect the DAX level to remain the same within the coming six months rose to 35 percent (February: 25). The number of people who think that the German leading share index is gaining ground remained almost stable at 38 percent.
However, investors have drawn many conclusions from the financial market crisis. The aspect security meanwhile has priority for 86 percent of those questioned when it comes to investing money (February: 82 percent). Furthermore, 83 percent explained that confidence in their bank is very important/important when investing money. Much further down in place three on the priority list is the yield of an investment. This was only very important/important for 71 percent (February: 77 percent). The financial strength or the rating of a bank has a similarly high relevance. As many as 68 percent still consider this an important aspect when selecting a financial investment.

“The figures reinforce our opinion that private investors are currently taking an ambivalent attitude towards the markets”, says Peter Schirmbeck, Head of Division at DZ BANK responsible for the certificate brand AKZENT Invest. “Although they view the markets in a much more positive light than in February, they do not believe that the financial market crisis is already over. This is also reflected in the investment behaviour: certificate investors are now reaching increasingly for guarantee certificates”, says Schirmbeck.

Fixed-term deposits, funds and certificates are on the increase
Despite the growing optimism, private investors are shying away from investing their money directly in shares. Only 20 percent of those surveyed are currently considering a share investment, which is somewhat less than in February. The preference among investors for call money and fixed-term deposits, funds, fixed-interest investments and certificates has risen on the other hand: 66 percent (February’s survey: 63) of those asked said they would consider call money and fixed-term deposits if they were to invest EUR 10,000 in the coming months. With at many as 40 percent – compared to 37 percent in February – equity funds followed in second place. They were thus well ahead of bond funds with 35 percent. Certificates also increased. 15 percent of investors would also include these in their financial considerations, which is two percentage points more than in February.

Demand for certificates exemplifies growing need for security
Moreover, the results of the survey show the following: around two thirds of investors who would invest in certificates find guarantee certificates attractive. Bonus certificates were also rated positively by 47 percent of the investors. Index certificates with no security buffer now only come into question for every one in three.
As before, Germans attach comparatively little importance to the tax aspect of a financial investment. This is only important/very important for 51 percent of those surveyed despite the upcoming introduction of a flat rate withholding tax at the turn of the year. Sensitivity for the subject thus decreases the older one becomes. At least 58 percent of 18-29 year-olds attach great importance to the tax aspect when investing money. The figure is 5 percent lower among 50-64 year-olds.

The data were collected in the period from 16 May to 23 May 2008 within the context of a telephone survey. The sample of 1,279 is representative for persons in the German population aged 18 and over with an affinity for investments.



Silvia Conesa, Spokeswoman DZ BANK AG
Tel.: +49 69 7447-90568