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.
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"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."
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