Europe's investment fund industry could do better when it comes to communicating with investors, giving advice and understanding investors' needs, according to a survey.
The European Fund and Asset Management Association (Efama) said 81% of the industry participants it had polled believed that better communication was needed; 75% called for better advice and 74% for better understanding of investor needs.
Two-thirds, or 65%, said a lack of trust, market risk and poor performance were the most relevant factors behind the fall in savings in financial assets.
When asked about long-term savings, 91% said retail investors needed to become aware of the benefits of long-term savings in the first place.
Efama’s survey also explored factors that could encourage asset managers to develop funds targeting long-term savings; 82% of respondents said the most relevant factor would be to create greater incentives for retirement savings, followed by greater household demand for long-term savings products (65%) and a dedicated framework within the European Union (54%).
Claude Kremer, president of Efama, added: “The survey reveals that the industry believes that rebuilding trust with retail investors will come through the promotion of long-term savings, which have the ability to generate higher returns than short-term savings.”
Kremer highlighted the need for the industry to engage with European and national governments to create incentives for investors to save for the long-term and their retirement.
Efama polled senior asset management experts at 46 corporate members, one associate organisation and 10 associations - the equivalent of 57 responses from 21 countries in Europe.
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