Consumer Monitor Autumn 2021 - Investing — AFM — NL

AFM Consumer Monitor
Autumn 2021
Component: Investors
© Ipsos 2021. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.

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Introduction
2 Introduction
4 Market Insights
13 Investor Profile:
Method of Investing
17 Investor Profile:
Investment Objectives
20 Investor Profile:
Investor Type and Level of Activity 26 Investor Profile:
Information and Costs Regarding Investing 30 Investment Portfolio 37 Independent Investors 46 Research Methodology Background The AFM advocates for fair and transparent financial markets. As an independent conduct supervisor, the AFM contributes to sustainable financial well-being in the Netherlands. The Consumer Monitor measures developments in consumer behavior over time. The Consumer Monitor was launched in 2004 and has been conducted annually since then. The primary objectives of the Consumer Monitor can be summarized as follows:

Describing the behavior and attitudes of financial consumers
Describing market and product aspects in the financial market.
Guide
This report concerns the Consumer Monitor, conducted in the autumn of 2021 (Q3 2021). Fieldwork took place from August 5 to August 13, 2021. This report covers the sub-topic "Investors," which is part of the Consumer Monitor once a year. The report pays attention to behavior and attitudes regarding the investment portfolio and the method of investing. Additionally, this year there is extra attention for independent investors. The results presented are representative of Dutch investors aged 18 and older. Where possible, results are compared with previous measurements. All differences described in the report are significant. Contents

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More than one-fifth of Dutch households have investments Do you have money invested in investment funds (not mortgage or pension-linked), shares, bonds, or other securities? Multiple answers possible 19% 5% 2% 11% 47% 15% 4% Yes, I myself Yes, someone else in the household No, but I do own cryptocurrencies No, but I have invested before No, I have never done it and I do not consider doing it either No, I have never done it but I do consider doing it Don't know Base: Screening – GfK Panel July 2021, all persons aged 18 and older: n = 33,278 Investors in the Netherlands 22% of households have one or more family members investing. This amounts to 1.9 million investing households

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The share of people investing themselves reaches the highest point since the start of measurements Do you have money invested in investment funds (not mortgage or pension-linked), shares, bonds, or other securities? Multiple answers possible Note: Answer option added in 2021 and question wording changed in 2017 and 2018, making comparison with earlier years not fully possible Investors in the Netherlands 17% 16% 17% 17% 14% 15% 16% 17% 19% 5% 5% 4% 5% 5% 68% 68% 68% 67% 65% 51% 51% 48% 47% 10% 14% 16% 15% 15% 15% 15% 14% 12% 12% 12% 11% 11% 2% 0% 10% 20% 30% 40% 50% 60% 70% 2013 2014 2015 2016 2017 2018 2019 2020 2021 Yes, I myself Yes, someone else in the household No No, never done and do not consider doing it No, never done but do consider doing it No, but I have invested before No, but I own cryptocurrencies Base: Screening – GfK Panel 2013-2021, all persons aged 18 and older: n 2021 = 33,278

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The number of investing households has increased by 12% compared to last year to 1.9 million households Do you or someone in your household have money invested in investment funds (not mortgage or pension-linked), shares, bonds, or other securities? Multiple answers possible Note: Question wording changed in 2017 and 2018, making comparison with earlier years not fully possible Data is re-percensed (excluding 'don't know') so this may slightly differ from previous slides. Households investing in the Netherlands 80% 81% 80% 80% 78% 80% 81% 79% 77% 20% 19% 20% 20% 22% 20% 19% 21% 23% 0% 20% 40% 60% 80% 100% 2013 2014 2015 2016 2017 2018 2019 2020 2021 No, no one in household invests Yes, one or more family members invest Base: Screening – GfK Panel 2013-2021, all persons aged 18 and older: n 2021 = 33,278

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Investment fund is the most popular form of investing. Ownership of index funds doubled compared to four years ago In which forms do you invest? Multiple answers possible Investment products in 2021 Investment products over the years Base: All respondents Q1 2013-Q3 2020: n=465-681, Q3 2021: n=1,104 60% 53% 20% 16% 13% 2% 2% 1% 9% 2% Investment funds Shares Index investment funds, Index trackers or ETFs Bonds Crypto Financial products with crypto’s as underlying value Leverage products Contracts for Differences Other investment forms Don't know

Six out of ten (60%) investors invest in investment funds, making this the most mentioned investment form in 2021, followed by shares (53%).
One in five (20%) investors uses Index investment funds, meaning the share has doubled in four years (Q3 2017: 11%). This form is particularly popular among starting investors (max. two years experience): 36% of them use this investment form compared to 15% of experienced investors.
Bonds, on the other hand, have become less popular again (16%).
62
59 61 59 57
61
65 63
60
54
59
54
60
56
50
56 54 54 55
51 51
55
57
52 54 53
11
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23 21
18 20 20 21 23 22 23
18 16
8 8
11 13 13
19 20
0
10
20
30
40
50
60
70
Q1
2013
Q3
2013
Q1
2014
Q3
2014
Q1
2015
Q3
2015
Q1
2016
Q3
2016
Q3
2017
Q3
2018
Q3
2019
Q3
2020
Q3
2021
Investment funds Shares Bonds Index investment funds

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The low interest rate was more often than last year the reason to invest a higher amount To what extent did the low interest rate on savings products play a role for you in making the choice to invest a higher amount? Role of interest rate in choice to invest a higher amount Base: All investors Q3 2021: n=1,104; All investors (excl. 'N/A') (Q1 2015 to Q3 2020: n=375-610) Q3 2021: n=869

The low interest rate was a major or decisive role for four out of ten (41%) investors who invested a larger amount. For a quarter (25%) the interest rate played no role.
Risk-seeking investors more often than cautious investors state that they invested a larger amount (87% vs. 69%) and that the interest rate played a major or decisive role (45% vs. 30% of investors who invested a larger amount).
31 34
29 31
41
34
34
41
44 44
37 40
30 28
36
25
0
20
40
60
80
Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q3 2017 Q3 2019 Q3 2020 Q3 2021 Major / Decisive role No role Not applicable: 34% 29% 37% 26% 32% 29% 31% 22% 22% 19% 27% 26% 6% 25% 34% 33% 8% Decisive role Major role Small role No role Not applicable

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79%
59%
53%
28%
22%
7%
13%
12%
27%
43%
34%
18%
5%
20%
17%
26%
40%
59%
4%
9%
3%
4%
4%
16%
I was alerted by an advertisement I was alerted by a friend, colleague, neighbor or family member I had extra financial means to invest I had wanted to invest for longer and was looking for a suitable moment to enter I could open an account very easily I wanted to achieve higher returns than I achieved before No role Small role Major role Decisive role Need for higher returns is mentioned more often than last year as an important reason to start investing Can you indicate to what extent the reasons below played a role in your decision to start investing now? What was the reason to start investing now? Base: respondents who invest max. 2 years: Q3 2020 n=130; Q3 2021 n= 226

For three-quarters (76%) of starting investors, the need for higher returns was a reason to start investing. This is an increase compared to last year, when this reason played a major or decisive role for two-thirds (66%) to start investing.
The ability to easily open an account plays a major/decisive role less often than last year (43% vs. 53%). The advice of friends or acquaintances, on the other hand, played a more important role in starting to invest (30% vs. 20%).
Reasons to start investing now
74%
55%
44%
21%
18%
15%
13%
25%
26%
39%
29%
19%
12%
12%
26%
37%
45%
46%
1%
9%
4%
3%
7%
20%
I was alerted by an advertisement I was alerted by a friend, colleague, neighbor or family member I had extra financial means to invest I had wanted to invest for longer and was looking for a suitable moment to enter I could open an account very easily I wanted to achieve higher returns than I achieved before 75% 54% 53% 24% 20% 8% 16% 17% 26% 41% 37% 16% 6% 22% 18% 32% 40% 56% 3% 7% 3% 4% 3% 20% I was alerted by an advertisement I was alerted by a friend, colleague, neighbor or family member I had extra financial means to invest I had wanted to invest for longer and was looking for a suitable moment to enter I could open an account very easily I wanted to achieve higher returns than I achieved before 2021 2020

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79%
59%
53%
28%
22%
7%
13%
12%
27%
43%
34%
18%
5%
20%
17%
26%
40%
59%
4%
9%
3%
4%
4%
16%
I was alerted by an advertisement I was alerted by a friend, colleague, neighbor or family member I had extra financial means to invest I had wanted to invest for longer and was looking for a suitable moment to enter I could open an account very easily I wanted to achieve higher returns than I achieved before No role Small role Major role Decisive role For four out of ten starting investors, negative savings interest was a reason to start investing Can you indicate to what extent the reasons below played a role in your decision to start investing now? What was the reason to start investing now? 79% 76% 67% 24% 10% 17% 23% 38% 11% 7% 10% 33% 5% Alerted via social media by persons giving recommendations on investing I looked for exciting pastime because I had time since Corona Many other people invest, I did not want to fall behind Due to (possible future) negative interest on savings account Base: respondents who invest max. 2 years:
Q3 2021 n= 226
Reasons to start investing now

Some banks already charge negative interest when one has a large amount on the savings account, and possibly this will increase further in the future. For four out of ten (38%) starting investors, this (possible future) negative interest played a major or decisive role in starting to invest.
Investors seem to start investing mainly because it seems a better alternative than saving. Reasons such as not wanting to fall behind others or being alerted by advertisements or social media played no role for the majority in starting to invest.

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13%
20%
23%
25%
19%
Total
(n=1,104)
More than half of investors would accept financial advice from an algorithm

More and more websites use automated systems to help customers. An example is a chat window where the user can ask questions. The question is then not answered by a human helpdesk, but by an algorithm that analyzes the question. If the possibility exists that financial advice would also be given via an algorithm (so-called robo-advice), then more than half (56%) of all investors state they would accept this advice. However, 20% actually prefer advice from a human and 23% want human validation to be performed. Approximately one in eight (13%) investors would treat robo-advice the same as advice from a human.
In the spring, the same question was asked to representative Netherlands (CM21Q1) and then 48% stated they would accept robo-advice. Acceptance among investors is thus somewhat higher than among the average Dutch person.
Suppose you would receive financial advice from an algorithm (robo-advice). How would you treat that robo-advice? Extent to which investors are open to financial advice from an algorithm (robo-advice) Base: All respondents 2021 n=1,104 11% 12% 21% 15% 22% 22% 23% 22% 23% 32% 23% 19% 19% 20% 15% Cautious (n=257) Neutral (n=654) Risk-seeking (n=193) 16% 15% 11% 13% 31% 21% 26% 13% 22% 31% 23% 20% 17% 15% 20% 32% 13% 19% 20% 22% 18 to 34 years (n=171) 35 to 44 years (n=142) 45 to 54 years (n=235) 55 years and older (n=556) Treat robo-advice as human advice Accept robo-advice, but prefer advice from a human Accept robo-advice only if human validation/check is done Only advice from a human Don't know 56% accepts robo-advice

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58
55
39
48
60
66
11
8
5
8 7
2
31
37
56
45
33 32
0
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20
30
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50
60
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Q3 2016 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Increase in independent investing among starting investors again; two-thirds invest primarily independently Which of the investment methods currently has the highest total invested assets? Main method of investing over time (all investors) 60 53 59 58 56 56 54 55 60 58 59 59 62 21 21 20 18 12 11 5 20 26 21 24 26 26 28 27 28 31 30 30 33 0 10 20 30 40 50 60 70 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Independent investing Investing via financial advisor Investing via wealth management Main method of investing over time (starting investors)

As in previous years, independent investing is the main method for the majority (62%) of all investors. Among starting investors, the share of independent investing as the main investment method is even slightly higher (66%). This is again a significant increase compared to the previous year.
The share investing with the help of a financial advisor as the main method has decreased significantly compared to last year (from 11% to 5%). In recent years, various providers have stopped this investment form and now refer their customers to other ways of investing. Among starting investors, the share of investing via the financial advisor is even lower (2%), they invest relatively often independently (66%).
All investors (Q1 2015 to Q3 2020: n=601-659), Q3 2021 n= 1,104 Investors who invest max. 2 years (Q3 2016-Q3 2020: n=87-164), Q3 2021 n=226

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The use of apps for executing investment transactions has increased In which way(s) have you executed transactions in the past year? Multiple answers possible Way of investing over time (regardless of method of investing or experience) Way of investing x Main method of investing

Seven out of ten (68%) investors who invest independently or via an advisor do this online (via internet banking or the provider's website), which is comparable to last year (72%). However, compared to 2020, an app is used more often to execute transactions (2021: 31%; 2020: 24%). Especially young people (18-34 years: 56%; 35-44 years: 34%; 45-54 years: 35%; 55+ years: 16%) and starting investors (54% vs. experienced investors: 26%) use this often.
Investors who describe themselves as cautious state relatively often that they have not executed any transactions in the past year (27%; neutral: 13%; risk-seeking: 3%).
Base: Investors who invest independently or via an advisor:
Q3 2019: n=446; Q3 2020: n=442; Q3 2021 n= 888 68% 31% 8% 14% 72% 24% 11% 14% 70% 24% 11% 20% Online Via app Personal contact No transactions executed 2021 2020 2019 Way of investing x Experience 68% 31% 8% 14% 64% 54% 2% 4% 70% 26% 8% 17% Online Via app Personal contact No transactions executed Total Invests max. 2 years Invests longer than 2 years 68% 31% 8% 14% 69% 33% 5% 14% 61% 15% 37% 13% Online Via app Personal contact No transactions executed Total Independent Financial advisor

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Crypto’s are traded relatively often via apps by independent investors, bonds relatively little Which investment forms have you traded independently via an app? Which investment forms have you traded via an app?

Crypto’s are traded most often via an app. Six out of ten (57%) independent investors who also own crypto’s have traded these via an app. This may be explained by the fact that young independent investors execute transactions via an app more often than older people (18-34 years: 57%; 35-44 years: 34%; 45-54 years: 37%; 55+ years: 18%) and also own crypto’s more often (18-34 years: 37%; 35-44 years: 28%; 45-54 years: 17%; 55+ years: 6%).
Index investment funds are also traded relatively often via an app. 42% of independent investors who invest in these funds have executed transactions via an app for this.
Base: Independent investors who own the mentioned investment forms n=122-531 15% 19% 29% 42% 57% 85% 81% 71% 58% 43% Bonds Investment fund Shares Index investment funds, Index trackers or ETF’s Crypto’s Yes via app No via app

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5%
10%
13%
49%
13%
28%
7%
40%
6%
12%
7%
38%
Future (large) care costs
For children's future
For paying off mortgage
For pension supplement
Independent investing Investment advice Wealth management Independent investors invest more often than others for asset growth or the excitement of investing With what goal do you invest via… (multiple answers possible) With what goal do you invest via… Multiple answers possible

The goals for which one invests differ per investment method. Independent investors do this more often than other investors for asset preservation/growth (58%; advice: 35%; wealth management: 45%), and they also do this relatively often for pleasure or challenge (37%; advice: 17%; wealth management: 11%).
Investors who use wealth management, on the other hand, do this more often than others for pension supplement (49%; independent: 38%; advisor: 40%).
Base: all respondents: independent investing n=850; financial advisor n=35; wealth management n=294 11% 45% 12% 63% 17% 35% 11% 70% 37% 58% 14% 49% Pleasure/excitement of investing Asset preservation Consumption Specific goal + future care costs

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Wealth management investors more often receive insight from providers into the feasibility of their investment objectives than before Does your provider make it clear to you annually whether your investment objective is still feasible? In which way(s) is the feasibility of your investment objective made clear? Percentage receiving insight into feasibility of investment objectives Base: All respondents who invest via wealth management: 2019-2020: n=196-201; 2021 n=294 Base: Investors receiving insight: 2019-2020: n=111-117; 2021 n=199

Seven out of ten (69%) investors who use wealth management state that they have received insight from the provider into the feasibility of their objectives. This is an increase compared to last year (then 55%). This insight is increasingly offered via a webpage (55%) and less often via a periodic discussion (22%).
The increase in insight into objectives via a webpage may also explain why investors more often state they have had insight. It is now easier for providers (in reach and frequency) to provide insight than when done via a periodic discussion.
Way of objective clarity
(multiple answers possible)
50
33
22
48
44
55
25 23
26
0
10
20
30
40
50
60
2019 2020 2021
Periodic discussion advisor Webpage investment account App on phone 54 55 69 0 20 40 60 80 2019 2020 2021

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There is a slight increase in the share of investors describing themselves as cautious Investor type per year: Cautious vs. Neutral vs. Risk-seeking

Investors describe themselves as cautious more often than a year ago (2021: 23%; 2020: 18%). However, the share of cautious investors is still lower than in the years prior.
Investors with a low amount (< €5,000) of freely disposable assets are relatively often cautious investors (34%). Of investors with €100,000 or more, only one in eight (13%) describes themselves as cautious.
Starting investors and investors who make few transactions describe themselves as cautious more often than experienced investors or investors with many transactions (resp. 28% vs. 22% and 26% vs. 15%).
34%
21% 22% 19% 15% 13%
53%
60% 65%
57% 62% 66%
13% 18% 13%
24% 22% 21%
Less than
€ 5,000
(n=271)
€ 5,000 to
€ 10,000
(n=145)
€ 10,000 to
€ 25,000
(n=190)
€ 25,000 to
€ 50,000
(n=151)
€ 50,000 to €
100,000
(n=113)
€ 100,000 or more
(n=142)
Investor type x Freely disposable assets As what type of investor do you see yourself? 23% 18% 29% 31% 37% 44% 43% 59% 61% 55% 49% 49% 44% 45% 17% 21% 16% 20% 14% 11% 12% 2021 2020 2019 2018 2017 2016 2015 All investors: 2015-2020: n=606-659; 2021 n= 842 Cautious Neutral (middle position) Risk-seeking

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Half of investors execute more than five transactions per year in their investment portfolio How many times have you executed transactions in your total investment portfolio in the past year? Number of transactions per year: ≤ 5 transactions vs. > 5 transactions (if one knows how many transactions were executed)

The percentage of investors executing more than five transactions per year has increased again. Of the investors who know how many transactions they executed in the past year, half (54%) executed more than five. With this, this group is larger for the first time than the 'light' investors: investors with a maximum of five transactions per year.
On average, investors execute 14.9 transactions per year.
Investors who periodically deposit money into the investment account execute > 5 transactions per year more often than investors who deposit money irregularly (71% vs. 52%).
Investors who primarily invest independently or via a financial advisor: 2015-2020: n=606-659; 2021 n= 842 17% 4% 9% 16% 16% 38% 1 to 5 times 6 to 10 times 11 to 20 times 21 to 50 times More than