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A relationship that needs tending
While investors still have confidence in the economy, their relationships with their advisors are fraying. Of those interviewed, about half used an advisor and of these, 46% would be willing to switch to another firm if the new company could show that it provided quality, unbiased advice and didn't push its own funds. Investors are in an awkward position: managing money in a high-risk environment without having faith in their advisors. "Brokers ranked dead last on a list of professions in terms of who investors trust," Suzanne Duncan said.
List of professions by trustworthiness:
"It is extremely likely I would recommend this professional to family or friends..."
Investment in green initiatives grows
One business strategy is resonating with investors: environmental or "green initiatives." Three quarters of all respondents are more likely to invest in companies with environmental best practices and 73% would invest in companies that produce alternative fuels. Also attracting investment are businesses that:
- Give back to the environment (63%)
- Produce all natural products (58%)
- Are involved with organic foods and products (49%).
One thing's for sure...advisors need to strengthen their client relationships quickly. Perhaps brokerage firms, fund managers and distributors should take note of the success of "green" strategies, which are based on the principles of transparency of information, public trust and long-term sustainability.
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