Mutual fund clients want less information, not more: IFIC poll: Knowledge Driven Revolution

Mutual fund customers tend to want less information about their investments, not more, according to a poll conducted for the fund industry's association.

The survey released Friday by the Investment Funds Institute of Canada found 80 per cent of the fund investors polled would prefer a two-page summary to a full annual report.

Only 12 per cent favoured a detailed annual document, while five per cent wanted both.

IFIC president Joanne De Laurentiis said the finding will be used in the industry's discussions with regulators over required disclosure. She noted that every additional requirement entails added costs for fund operators and dealers.

The survey found "widespread support for brevity . . . among all age groups and types of investors," Angela Marzolini, vice-chairwoman of Pollara, said after presenting the poll at IFIC's annual conference.

The survey last summer of 1,865 fund clients found the industry overall is "doing quite well in terms of providing information and providing service to consumers," Marzolini told the 620-delegate meeting.

It also confirmed the adage that mutual funds are sold, not bought: 85 per cent of those polled made their purchases through financial advisers, and only 11 per cent dealt online or directly with fund order-takers.

The survey, claiming a 95 per cent probability of being accurate within 2.2 percentage points, also found 85 per cent were satisfied with the advice they received.

Marzolini said there was "uncertainty" about how advisers are paid, with only 55 per cent of adviser clients recalling conversations about compensation.

But 84 per cent were "at least somewhat comfortable" with the fees they pay, and only 18 per cent said they weren't happy with their understanding of the fee structure.

And fees paid to fund companies and salespeople ranked only eighth and ninth among factors considered in buying a fund, with the adviser's opinion rated first and perception of risk second.

Marzolini said focus groups showed "a very poor recollection" of fund prospectuses and annual reports, and noted the poll's finding that "investors prefer brevity over detail."

IFIC's De Laurentiis told reporters that the poll - which coincides with ongoing regulatory discussions over requirements for point-of-sale disclosure - "confirmed Canadians' strong preference for using advisers" and "confirmed what the dealers have been saying to us."

She observed that the survey, the first in what is envisaged as an annual series, may have been coloured by the generally favourable financial results of recent years.

"In good times, consumers tend to be much more positive" about the markets and about the information they receive, De Laurentiis commented.

That said, she stressed that "they don't want complexity or long documents" and prefer their investment information "short and simple."

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HOME Canadians Should Pay NOT to be Poisoned: NDP V for Vendetta - R for Reality Canadian Bird Flu Pandemic Looming ? Shill of the Week: Stephan Harper Aspartame: The Sweetest Killer Chicken Little Terrorist of the Week: Creating Fake Terrorists Shill of the Week: Paul Martin The Number 1 Reason YOU became a Slave	Mutual fund clients want less information, not more: IFIC poll GARY NORRIS - CP October 02, 2006 Mutual fund customers tend to want less information about their investments, not more, according to a poll conducted for the fund industry's association. The survey released Friday by the Investment Funds Institute of Canada found 80 per cent of the fund investors polled would prefer a two-page summary to a full annual report. Only 12 per cent favoured a detailed annual document, while five per cent wanted both. IFIC president Joanne De Laurentiis said the finding will be used in the industry's discussions with regulators over required disclosure. She noted that every additional requirement entails added costs for fund operators and dealers. The survey found "widespread support for brevity . . . among all age groups and types of investors," Angela Marzolini, vice-chairwoman of Pollara, said after presenting the poll at IFIC's annual conference. The survey last summer of 1,865 fund clients found the industry overall is "doing quite well in terms of providing information and providing service to consumers," Marzolini told the 620-delegate meeting. It also confirmed the adage that mutual funds are sold, not bought: 85 per cent of those polled made their purchases through financial advisers, and only 11 per cent dealt online or directly with fund order-takers. The survey, claiming a 95 per cent probability of being accurate within 2.2 percentage points, also found 85 per cent were satisfied with the advice they received. Marzolini said there was "uncertainty" about how advisers are paid, with only 55 per cent of adviser clients recalling conversations about compensation. But 84 per cent were "at least somewhat comfortable" with the fees they pay, and only 18 per cent said they weren't happy with their understanding of the fee structure. And fees paid to fund companies and salespeople ranked only eighth and ninth among factors considered in buying a fund, with the adviser's opinion rated first and perception of risk second. Marzolini said focus groups showed "a very poor recollection" of fund prospectuses and annual reports, and noted the poll's finding that "investors prefer brevity over detail." IFIC's De Laurentiis told reporters that the poll - which coincides with ongoing regulatory discussions over requirements for point-of-sale disclosure - "confirmed Canadians' strong preference for using advisers" and "confirmed what the dealers have been saying to us." She observed that the survey, the first in what is envisaged as an annual series, may have been coloured by the generally favourable financial results of recent years. "In good times, consumers tend to be much more positive" about the markets and about the information they receive, De Laurentiis commented. That said, she stressed that "they don't want complexity or long documents" and prefer their investment information "short and simple." Read the full article here Broken Link? If the link to the original article is broken or has been altered you can view the article by clicking here. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Features Archive
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