Less than half of investors in the Asia Pacific region trust the financial services industry, according to a recent report by the CFA Institute, marking a key challenge in an increasingly turbulent market environment.
Just 49 percent of investors surveyed in the region trusted the sector with Hong Kongers demonstrating extreme skepticism – just 5 percent believe advisor «always» place client interest first compared to 36 percent in the region. This spells especially bad news for the market as 58 percent believe a financial crisis is «very likely» in the next three years (compared to 49 percent globally).
«This time of heightened market volatility sets up a very different path for those who will succeed in meeting their investment goals and those who will not,» said Nick Pollard, managing director, Asia Pacific of CFA Institute. «Fear and panic can obscure sound investment decision-making.»
Still, trust levels today are already significantly higher with Hong Kong, India, the United Arab Emirates and Brazil all recording the greatest increases. Singapore and Australia are amongst those that recorded the greatest decreases, the report added.
Brand (Still Matters)
For better or for worse, the name of your company still matters a lot in the region. 60 percent of retail investors claim they would prefer a firm with «a brand I can trust» over one with «people I can count on».
Still, there are ways to equip these people that can improve relationships. Over 60 percent said increased use of tech made them trust advisors while more tan 70 percent valued transparency of information on matters such as fees and easy-to-understand reports.
«Trust in the investment management industry during this challenging time is more valuable than ever,» Pollard added. «Investment professionals who understand and navigate the layers of investor trust will be better equipped to serve their clients and demonstrate how the investment industry can better serve society.»
