See no evil: Clients still turning a blind eye to losses

Recession spurred a state of denial for many, Schwab survey shows

Aug 4, 2009 @ 2:55 pm

By Sue Asci

Investors have been ignoring critical information about their investments — and also rarely have been talking with their advisers — since the financial crisis began last year, according to a new survey commissioned by The Charles Schwab Corp.

In fact, 36% of respondents said they did not know which mutual funds they owned, according to a nationwide survey of 602 mutual fund owners conducted online in April by Kelton Research of Culver City, Calif., and New York.

Meanwhile, only 31% of those surveyed said they spoke with their broker or adviser on a regular basis, the survey reported.

A full 40% reported that they had not become more knowledgeable about their investments since the markets began their massive decline, while 45% said they had. [other 15% no opinion – dh]

“I think some investors tend to be overwhelmed or intimidated by investing,” said Peter Crawford, senior vice president for investment management at Schwab of San Francisco.

“People don’t want to look at their statements and see that red ink,” he continued. “They may think if they don’t look at it, it won’t be as bad.”

Looking to the future, most of the investors surveyed, or 60%, said they were not planning to make changes to their portfolio in the next six months.

Thirty-nine percent of respondents said that they had made changes to their portfolio allocations since the stock market began to plummet in September.

Only 22% of respondents said they planned to add assets to a fund, and 18% said they planned to invest less, the survey found.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Where in the U.S. are RIAs growing the fastest?

InvestmentNews' deputy editor Robert Hordt talks to senior columnist Jeff Benjamin about his report on how registered investment advisers are faring in different regions of the country.

Latest news & opinion

Top 10 RIAs in the South

These are the largest registered investment advisory firms in the Southern U.S., based on AUM.

Top 10 RIAs in the Midwest

These are the largest registered investment advisers in terms of AUM in the Midwestern U.S.

Top 10 RIAs in the Northeast

These are the largest registered investment advice firms in the Northeastern U.S., in terms of assets under management.

10 predictions for financial advice in 2019

Deloitte expects these 10 changes will hit the financial advice business in 2019.

Midwestern magic? RIA assets soared nearly 30% there last year

Theories for what's driving the growth spurt abound, but it surpassed all other regions of the country.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print