The figures were published in the CFA Institute’s ‘Enhancing Investors’ Trust – the 2022 CFA Institute Investor Trust Study’, which measured levels of trust and explored the factors that drive trust in financial services among retail investors. and institutional in 15 markets worldwide.
Strong market performance, fee compression, technological transparency, better access to markets and new personalized products are the five factors that build trust, according to the study.
The study identifies increased use of technology as a major trust driver, simplifying investment by improving access to markets and information. Half of retail investors and more than 80% of institutional investors say the increased use of technology has increased trust in their advisor or asset manager, respectively.
William Tohme, CFA, Senior Regional Director, Middle East and North Africa at CFA Institute, said, “As one of the most trusted countries in financial services globally, the path of the Arab Emirates united towards a resilient and diversified economy was marked by efforts to maintain the stability and integrity of the financial system. The surge in confidence that we are currently witnessing is a positive indicator.
The proportion of institutional investors with high or very high confidence in financial services rose to 86% from 65% in the previous survey. Among retail investors, confidence levels are at 60%, down from 46% previously.
The study also indicates that millennial retail investors – and particularly those between the ages of 25 and 34 – are the most confident in financial services (72%).
For the first time, most retail investors globally (56%) expect that over the next three years there will be more access to technology platforms and tools through which they can execute their investment strategies. important than access to a human being for help. This reflects a steady shift in sentiment across 12 of the 15 markets surveyed and resonates strongest in India (90%) and the United Arab Emirates (84%).
Two-thirds of institutional investors now say they invest in cryptocurrencies. Globally, 32% of retail investors invest in cryptocurrencies, with India leading at 67%, followed by the United Arab Emirates (66%) and Brazil (58%).
Globally, 84% of institutional investors would invest in a fund that primarily uses artificial intelligence to select investments, with a similar proportion (78%) believing that the use of AI in investment decision-making investment will lead to better results for investors. A smaller proportion of retail investors (39%) would consider AI-focused funds.
