A survey of private investors conducted by Research in Finance has revealed that 37% feel disengaged with their investments.
Additionally, almost half reported feeling “overwhelmed” due to the overuse of jargon and having to decipher information, according to the research.
Those surveyed gave their insight into how asset managers could give them more clarity and increase their overall engagement with their investments:
One respondent said they’d like “a much more simplified charging structure explanation, which must also be accurate.” 61% of respondents said they wanted to know “why their investment performed the way it did”.
Private Markets Fund Admin Report 2023
“Communicating fees clearly is one of the biggest industry issues”, said Adele Gray, chief operating officer at Research in Finance. “There needs to be transparency and consistency across providers, and it should be communicated in a way that caters to those with lower financial capability (e.g. monetary value rather than percentages).”
Another said they expected “regular updates on underlying investments in funds and if relevant any specific reasons for any switches in investment strategy.” 45% of respondents said they want more information on how their money is invested and changes that are made.
39% wanted more information regarding the level their investment is exposed to.
Gray concluded: “From the onset of the relationship, firms need to strive for a balance between delivering the simplicity and transparency that is preferred by the investor, while also still providing accurate information explaining the legalities and regulations required.”
