Demands on investment managers rising: CFA survey
18 Feb 16
Retail and institutional investors share the view that financial professionals are falling short on the issues of fees, transparency, and performance, according to a new survey by the CFA Institute, the global association of investment professionals. The institute surveyed 3,312 retail investors from 10 countries and 502 institutional investors from six countries between October and November 2015.
Click on the arrows in the picture to see the main findings.
Performance is important: 53% of retail investors and 60% of institutional investors cited “underperformance” as the biggest factor that would lead them to switch firms.
This was followed by “increases in fees”; “data/confidentiality breach”; and “lack of communication/responsiveness”.
About 45% of institutional investors and 43% of retail investors would leave an investment firm if data security were to be compromised, demonstrating the importance placed on cybersecurity in today’s markets.
The study also found that once an issue has triggered an investor to re-evaluate their relationship with an investment manager, the majority – 76% of retail investors and 74% of institutional investors – are likely to leave within six months.
