In the quantitative survey of the latest wave of our Retail Consumer Interests Study (RCI), exploring sentiment and motivation amongst over 1,700 UK Investors, 88% agreed that they have clear information about their investments whilst 84% agreed that they can trust their Asset Managers.
A positive endorsement for the Asset Management industry generally, but with an eye on improving consumer experience further, those subscribing to the RCI have subsequently embarked on an extensive review of literature and communications, coming together to share best practice principles and qualitative review findings of over 50 examples of investor information.
An area of paramount focus was the communication of any changes, with 74% of investors agreeing that they feel informed as and when changes are made to their funds. It was felt however that to ensure that investors continue to feel comfortable and confident in interpreting what any changes mean for them, any and all reactions should be consistently monitored. Our review of three examples of this kind of communications with our proprietary panel of 40 Private Investors identified 6 key principles to consider when it comes to notifying investors of changes to their investment or fund.
Bringing the need for engagement into sharp focus, our survey revealed that 37% of private investors are disengaged with their investments. They may be lacking in confidence, time-poor, or easily overwhelmed by technical language or ‘jargon’. They can be all too easily ‘put off’ by having to decipher information. It is therefore of vital importance that Asset Managers establish and maintain engagement early on in the relationship. This is of course a constant challenge – how should companies balance investor preference for simplicity, clarity and in some cases, brevity, with the disclosure of the regulatory and legal information required?