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In comparison to the study compiled in 2000, differences can be observed in the composition of the asset portfolios of private households. Among those polled, the proporton of individuals who put their money in investment funds fell from 38% to 32%. Derivative financial instruments are used by 2.3% of the people surveyed (in comparison to 2.9% in 2000). And the bear market has had an impact on the yields achieved by investors - half reported having incurred losses on their stock investments for 2001. The equity portfolio of the average private investor is mainly comprised of Swiss blue chips whereas, on balance, he or she owns holdings in three different companies. An average of 30% of those individuals' assets is invested in stocks.
As it pertains to investment and information habits, various shifts were identified. The primary source of information on investment and economic matters remains the print media. However, in the meantime, more than half of all investors have also come to rely on the Internet for such information. In the age 18 through 29 category, that proportion already stands at almost 80%. The time spent on obtaining information related to personal investments fell by roughly one-quarter to 34 minutes per week. Weak share prices are the likely reason for that waning degree of interest. About the same amount of time as two years ago (25 minutes per day) is spent on obtaining information of a general economic nature.
Aside from the print media and Internet, investment advisors are accorded a continuing high degree of significance when it comes to the communication of financial information: about half of all those surveyed regularly consult their investment advisors. In comparison to the study conducted in 2000, the level of investor ken has clearly improved. The strong increase in the number of those who read annual reports (+70%) tends to indicate that investors are becoming more oriented towards the "fundamentals" of companies they own. Considerably greater significance for the price development of a given stock is being accorded to the quality of a company's management. Differences were also to be observed in the way share transactions are conducted. While online trading in 2000 was utilised by 16% of those polled, that reading now stands at 25%. Among the 18 through 29 age group, today the Internet is by far the most frequent means of order entry. On average, those individuals conducted three transactions in 2001. However, roughly one-quarter of all shareholders did not make a single trade during the period under examination.
In light of the new directives enacted by the SWX Swiss Exchange, a number of questions were asked on the topic of corporate governance. From the responses, it is evident that a fundamental premise of corporate governance - the co-determination right of shareholders - is not without its problems. A clear majority of shareholders in fact have no interest whatsoever in having a say in the companies they hold, but prefer to rely instead on forces in the marketplace. In the political arena, one would refer to this syndrome as "voting with one's feet".
The survey conducted in 2000 coincided with a raging bull market. Share prices were recording new highs, and investor behaviour at the time exhibited signs of a "speculative bubble". The ensuing two-year bear market has had a significant impact on the previous mood, attitudes and conduct of investors. A comparison of the findings obtained at the differing points in time that both studies were conducted highlights those changes in people's approach to investments, as well as reflects how different the perception of market action and attitudes of investors towards putting their savings in stocks can be during a bull market and during a bear market.
