The CFA Institute Trust Report is here

CFA Institute’s Trust Report 2020, Earning Investors’ Trust, has been published. This fourth edition of the CFA Institute investor trust study examines how trust in the industry has evolved and concentrates on the key elements contributing to trust in an investor relationship: information, innovation and investor’s influence.

Trust is truly a multifaceted topic and can be approached from two sides: the clients willingness to trust as well as trustworthiness of the institutional investor. Trust is essential for the capital markets to function properly. Without it the whole industry would be stagnant and costly. And trust is truly tested on these times of uncertain future.

The two major components building trust and value are credibility and professionalism. The report offers a closer look at the contents of all of these elements and for example how innovation through technology has an effect in investors’ viewpoint.

The report was compiled using extensive survey data from both retail investors and institutional investors acting in 15 global markets. Markets that were specifically investigated were France, Germany, South Africa, UAE and UK.

You will be able to earn 1 PL (professional learning) credit for this reading material. You can find the report here.

On the whole, investors appear split when choosing between brand and people. However, 75% of younger investors would choose the firm with a trusted brand, compared to 29% of older investors

Younger investors remain the most enthusiastic about personalization, but interest from older investors is increasing.