CAMBRIDGE, Mass. -- Investors are more concerned about with whether a mutual fund company will be around for the long term than a fund's actual performance, according to a new Cogent Research survey.
The survey of 4,000 affluent and high net worth investors showed that in the current environment, combined perceptions of a firm's financial stability and range of products is a more significant driver of customer loyalty than perceptions about short- and mid- term, and consistency of investment performance.
In another part of the survey of fund companies, nine out of ten said they have more customers at risk of defecting than remaining loyal.
"In times like these, where positive investment performance is difficult, firms must provide or promote other offerings that address the existing mood of the market-thus, smaller or boutique firms with limited options will have a tough time maintaining loyalty due to lack of product or service breadth," said Antonio Ferreira, managing director of Cogent's wealth management group.
Investors are looking for a safe harbor and the "assurance that companies they invest with today will be here tomorrow," Ferreira said.
"And when they find a partner they trust, investors want enough options within a fund family to suit more of their changing investment needs."
