CFA Institute survey: trust in investment management more valuable than ever

CFA Institute, the global association of investment professionals, has released the fourth edition of its trust survey, “Earning Investors’ Trust: How the Desire for Information, Innovation, and Influence is Shaping Client Relationships”. 

The survey measured the opinions of more than 4,000 retail and institutional investors in 15 markets globally, including 100 retail investors and 25 institutional investors in SA. In the report, CFA Institute analyses the dimensions of trust in the system, at industry and firm level, and finds that investors seek more information, innovation and influence in their interactions with the investment management industry.

SA highlights:

• Investors’ trust in the financial system in SA is relatively strong, standing in joint third place internationally at 60%, compared with 46% globally;
• Investors’ fears of a crisis are high: only 50% of investors in SA believe their investment firms are well prepared to manage their portfolio through a crisis, compared with 49% globally;
• 63% of investors in SA have confidence in receiving state-sponsored pension benefits, compared with 68% globally;
• Personalised investment products are a priority for SA investors, with 94% having an interest, compared with 77% globally;
• 66% of SA investors would trust investment advice from a human over a robo-adviser (66%), compared with 73% of investors globally; and
• 36% of investors both in SA and globally would consider the use of artificial intelligence to select investments.

“While SA has scored better than most markets surveyed on the level of trust in the financial system, it’s imperative that more individuals feel able to engage confidently and appropriately with the investment industry,” said Nerina Visser, CFA, president of CFA Society South Africa.

“Improving investment outcomes for tomorrow’s retirees is increasingly critical, yet even among the investors surveyed in SA, just 64% feel confident of being able to afford to stop working at their planned retirement age. A core tenet of CFA Society South Africa is to provide our credentialed investment industry with a diverse programme of continued professional development (CPD) to enable the highest quality professional learning, and ultimately build investor trust.”  

• To review the complete study findings, visit Earning Investors Trust.
• For findings for SA and all participating markets, visit Market Snapshots.
• To access the 2018 trust study, visit Next Generation of Trust.

This article was paid for by CFA Society South Africa.