Almost Half of Americans Have No Investments and a Third Cite a Lack of Investment Understanding as the Main Reason Finds New Research from Janus Henderson

Rhea-AI Summary

Janus Henderson (NYSE: JHG) released its 'Risky Business? What Makes You Invest (or Not)' report, revealing that 48% of Americans do not hold any investment assets. Key findings include:

- 38% prefer easily accessible funds through savings or checking accounts
- 30% cite pre-existing debts or financial obligations
- 30% lack understanding of investment methods
- 46% aspire to invest in the future, with 22% planning to start within three years
- Only 40% of women hold investments compared to 65% of men
- 33% of Gen Z investors don't plan to ever invest

To address these issues, Janus Henderson launched its Direct Advice offering, providing greater access to financial advice for current and potential individual investors. The company also offers a Direct Channel for self-service investors and an investment advisory service for retirement accounts.

Positive

• Janus Henderson launched Direct Advice offering to provide greater access to financial advice
• 46% of non-investors aspire to invest in the future
• 22% of non-investors plan to start investing within the next three years
• Janus Henderson offers a Direct Channel for self-service investors with access to nearly 40 investment options
• The company launched an investment advisory service for retirement accounts in 2023

Negative

• 48% of Americans do not hold any investment assets
• 30% of non-investors cite a lack of understanding of investment methods
• Only 40% of women hold investments compared to 65% of men
• 33% of Gen Z investors don't plan to ever invest
• 23% of women cite lack of understanding as a important hindrance to investing

DENVER, Oct. 7, 2024 /PRNewswire/ -- Global active asset manager, Janus Henderson (NYSE: JHG), today released its "Risky Business? What Makes You Invest (or Not)," report (the "Report"), which seeks to better understand investment habits amongst Americans. The research revealed that almost half of Americans (48%) do not hold any investment assets*, indicating a gap between the financial aspirations of U.S. consumers and their financial behaviors.

Those not investing cited reasons such as a preference for easily accessible funds through savings or checking accounts (38%), pre-existing debts or financial obligations (30%), and a lack of understanding of investment methods (30%). Such findings suggest there is a need for more transparency, simplified information, and resources from the investment sector to galvanize greater understanding and participation.

Despite these high figures, 46% do aspire to commit to investing sometime in the future, and almost a quarter (22%) have plans to start in the next three years.

Research from Janus Henderson also found differences in attitudes and behaviors across generational lines, with 33% of Gen Z investors, those born between 1997 and 2012, confessing they don't plan to ever invest, and a further 17% delaying their investment plans for the foreseeable future.

Those not investing cited a lack of understanding about investing (34%), as well as a feeling that they are too young to invest (28%).

The research also found a stark contrast in the way men and women approach investing. Just 40% of women hold any type of investments, compared to 65% of men. The study also suggests that women tend to exercise more restraint in investing, with just 32% of female investors investing over 10% of their salary, as opposed to 44% of male investors.

A professed lack of understanding came up when female respondents were asked why they described themselves as 'unlikely' to invest. 23% cited this as a crucial hindrance (only 17% of men cited the same), indicating a need for more financial education when it comes to investing.

Ben Rizzuto, Wealth Strategist with the Specialist Consulting Group at Janus Henderson said, "It's clear that a lack of understanding around how to invest is still playing a large part in the financial planning behaviors and decisions of the U.S. population."

"We launched our Direct Advice offering at Janus Henderson to address the clear and present need for greater access to financial advice for current and potential individual investors. Investing is a crucial pillar of individual financial planning and can be a key route to financial empowerment."

Janus Henderson's Direct Channel caters to do-it-yourself investors in the U.S., seeking to directly invest in a Janus Henderson fund. Clients benefit from world-class customer service and have full access to the firm's lineup of nearly 40 investment options across equity, fixed income and multi-asset funds. This includes Janus Henderson's Government Money Market Fund ("the Fund") (ACDXX), whereby Janus Henderson will donate an amount equal to half of its management fees for all assets under management from the Fund to the American Cancer Society (ACS)** to support cancer research, advocacy, and patient support.

In addition to the Direct Channel's self-service platform, Janus Henderson launched an investment advisory service for retirement accounts in 2023 through the Janus Henderson Investment Advice ("Direct Advice") program. The Direct Advice program is designed to give enrolled clients confidence in their retirement journey through free*** investment advice from licensed investment consultants. Clients can enroll in one of two programs, Direct Advice Investments and Direct Advice Portfolios. The Direct Advice Investments program provides our investors with a point-in-time recommendation into one of three Global Allocation strategies targeting conservative, moderate, and aggressive growth. The Direct Advice Portfolios program places clients in one of six portfolios aligned to their individual risk tolerance and investment goals through varying allocations of equities and fixed income products.

To find out more about Janus Henderson's Direct Advice offering, visit: https://www.janushenderson.com/en-us/investor/resources/programs/direct-advice/

Media Contacts:

Gianni Lai
713-628-2308
JanusHendersonUS@KWTGlobal.com

Sarah Johnson
720-364-0708
Sarah.johnson@janushenderson.com

Investor Relations Contact:
Jim Kurtz
303-336-4529
Jim.Kurtz@janushenderson.com

Notes to editors

*In this survey Investment Assets were defined as assets such as stocks, bonds, or real estate with the expectation of generating returns and growing wealth over time.
**The donation of Janus Henderson's management fee revenues will be net of any waivers.
***There are no additional costs for advice beyond the underlying fund expenses.

Research Methodology
Data is based on an online survey conducted between June 28 and July 5. Sample size n=5,010 Americans aged 18+. Data has been weighted to be representative of the national population. 

In this survey Investment Assets were defined as assets such as stocks, bonds, or real estate with the expectation of generating returns and growing wealth over time.

Research conducted by HarrisX, https://www.harrisx.com/  

About Janus Henderson Investors

Janus Henderson Group is a leading global active asset manager dedicated to helping clients define and achieve superior financial outcomes through differentiated insights, disciplined investments, and world-class service. As of June 30, 2024, Janus Henderson had approximately US$361 billion in assets under management, more than 2,000 employees, and offices in 24 cities worldwide. The firm helps millions of people globally invest in a brighter future together. Headquartered in London, Janus Henderson is listed on the New York Stock Exchange.

This press release is solely for the use of members of the media and should not be relied upon by personal investors, financial advisers or institutional investors. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes. All opinions and estimates in this information are subject to change without notice.

Issued by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK  Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), (each registered in England and  Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial  Conduct Authority), Tabula Investment Management Limited (reg. no. 11286661 at 6th Floor, 55 Strand London WC2N 5LRW and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 78, Avenue de la Liberté, L-1930 Luxembourg, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).  Henderson Secretarial Services Limited (incorporated and registered in England and Wales, registered no. 1471624, registered office 201 Bishopsgate, London EC2M 3AE) is the name under which company secretarial services are provided. All these companies are wholly owned subsidiaries of Janus Henderson Group plc. (incorporated and registered in Jersey, registered no. 101484, with registered office at 13 Castle Street, St Helier, Jersey, JE1 1ES). Janus Henderson Investors (Australia) Limited ABN 47 124 279 518 is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect. U.S. by SEC registered investment advisers that are subsidiaries of Janus Henderson Group plc; Canada through Janus Henderson Investors US LLC only to institutional investors in certain jurisdictions.

Janus Henderson Direct Advice is offered by Janus Henderson Investors US LLC ("JHIUS"), an SEC-registered investment adviser.

About Janus Henderson Investors and ACS

The American Cancer Society does not endorse any service or product.  Shares of Janus Henderson Government Money Market Fund are not sponsored, endorsed, or promoted by the ACS, and the ACS is not an investment adviser or service provider to the Fund, Janus Investment Fund, or Janus Henderson.

Janus Henderson will donate from its own resources, an amount representing 50% of the Janus Henderson's quarterly management fee revenue attributable to Janus Henderson Government Money Market Fund, net of any fee waivers and/or expense reimbursements, to the ACS. Janus Henderson will make annual minimum contributions to the ACS of $1 million from 2024 to 2027, and in each year thereafter to the extent this arrangement continues.

Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus Henderson at 800.525.3713 or download the file from janushenderson.com/allfunds. Read it carefully before you invest or send money.

Investing involves risk, including the possible loss of principal and fluctuation of value.

For Janus Henderson Government Money Market Fund: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.

Fees may be voluntarily waived and/or reimbursed to the extent necessary to assist the Fund in attempting to maintain a yield of at least 0.00%.  Any waivers and reimbursements could be changed or terminated at any time.

The Fund may invest cash balances in the cash liquidity fund. View holdings and other information on the Fund's webpage:https://www.janushenderson.com/en-us/investor/product/government-money-market-fund/

There is no assurance the stated objective(s) will be met.

Mutual funds distributed by Janus Henderson Distributors US LLC.

Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.

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SOURCE Janus Henderson

FAQ

What percentage of Americans don't hold any investment assets according to Janus Henderson's report?

According to Janus Henderson's 'Risky Business? What Makes You Invest (or Not)' report, 48% of Americans do not hold any investment assets.

What are the main reasons Americans don't invest according to the JHG study?

The main reasons Americans don't invest include preference for easily accessible funds (38%), pre-existing debts or financial obligations (30%), and lack of understanding of investment methods (30%).

How does Janus Henderson (JHG) plan to address the lack of investment understanding among Americans?

Janus Henderson launched its Direct Advice offering to provide greater access to financial advice for current and potential individual investors, addressing the need for more financial education and understanding of investments.

What percentage of women hold investments compared to men, according to the Janus Henderson report?

The report found that 40% of women hold investments compared to 65% of men, indicating a significant gender gap in investment participation.

What services does Janus Henderson (JHG) offer for individual investors?

Janus Henderson offers a Direct Channel for self-service investors, an investment advisory service for retirement accounts, and the Direct Advice program providing free investment advice from licensed investment consultants.