Press comment: Navigating differing risk attitudes

19 October 2019

If you’re covering research from Cass Business School and University of Bristol on appetite to risk please see the following comment from David Gibb, financial planner at Quilter:

"Appetite to risk is one of the main ingredients to the investment element of a financial plan. Recent research from Cass Business School and University of Bristol confirm some trends that had previously been reported, such as women are less risk averse than men. However, some of the findings, such as young people being more risk averse seems to run counter to the criticism that young people are flippant with their money. Risk is obviously a tricky thing to stomach. When markets start to drop and you see the value of your hard earned cash plummet the knee jerk reaction is to pull out right away. However, risk is also powerful and it’s important, particularly at a younger age, to take on a certain amount of risk so that you can boost your longer term returns.

"Financial advisers are well equipped to help their clients navigate the world of risk and return and more than that help consumers to fight the behavioral urges that often lead them to miss out on returns. As volatility in the markets this will become even more vital as it can be tempting to exit the market or switch to cash to avoid risk and reduce further loss. However, it’s impossible to time the market and this could lead to missing out on the best days, which can have a dramatic impact on your investments.

"To put this into perspective, if you invested £10,000 in UK equities from 1993 to 2018 you would have £44,752. However if you missed the 25 best days that would drop to just £19,802. Even missing just 10 days and the returns drop to £29,932."

For more information contact

Kathleen Gallagher
02380 726293
07990 004932

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.