More than a third of investors question accuracy of performance reports

Some perceive a conflict of interest in advisers supplying investment performance — regardless of adviser type.
JUN 23, 2017

Despite greater access to information, 35% of investors aren't entirely confident that the performance reports they receive from advisers are accurate and reliable, according to Phoenix Marketing International. In addition, 41% of investors say they aren't provided — or don't know if they are provided — with core information about investment performance from their investment adviser, 401(k) plan provider and other financial firms, according to the financial research firm. Based on a survey of 2,626 individual investors, Phoenix found that some investors "perceive an inherent conflict of interest with investment advisers as the source of performance reports," the firm said in a release. The study, "The State of Investor Trust & Transparency," found this to be the case whether the advice came from human advisers or robo platforms, and regardless of whether the adviser acts in a fiduciary capacity. "Through the eyes of some investors, a performance report crafted by an adviser or firm overseeing the investments is like a school report card written by the student," said David Thompson, managing director of the firm's financial services affluent practice.

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