In a new global survey “The Next Generation of Trust: A Global Survey on the State of Investor Trust”, on the importance of trust in the investment management industry, CFA Institute examines changing investor expectations and how a new generation of investors and new investment tools are affecting the nature of trust.
The survey reveals a significant gap between what more than 3,000 retail investors expect from their financial advisers and how satisfied they are with the relationship. Retail investors believe that financial advisers fall short of meeting expectations the most in the areas of transparency and performance. Investors surveyed say that their trust in advisers is driven by priorities of full disclosure of fees (84% importance), disclosure and management of conflicts of interest (80%), and generating returns better than a benchmark (78%), yet respectively, only 48%, 43%, and 44% of participants say that advisers deliver satisfactorily on these.
Responses from 3,127 retail investors and 829 institutional investors from Australia, Brazil, Canada, China, France, Germany, Hong Kong, India, Singapore, United Arab Emirates, United Kingdom and United States were gathered for the survey. Retail investors surveyed were 25 years or older with investible assets of at least US$100,000. Institutional investors surveyed were those responsible for investment decisions at entities with at least $50 million in assets under management.
Of all the markets surveyed, German retail investors are the least trusting of the financial services industry. Moreover, their level of trust has declined since the last survey, while trust has risen in most other markets.
Download the full report and a market snapshot on Germany here: