Financial Communications Are Broken

Retail investors are struggling to understand what they invest in and how much it costs. 

Explore both the problems and potential solutions with our free white paper, based on new quant and qual research with over 1,000 UK fund investors.

Just 23% of fund investors can calculate what they would pay when presented with charges information on a factsheet.

  • Objectives are not clear and the only benchmark consistently used is cash.
  • Factsheets are too long, serve many masters and confuse.
  • KIIDs are largely unread by retail customers and do little in practice to inform.

This new white paper from Boring Money shares quantitative and qualitative research into consumers. We uncover what they understand, what is not clear and where there is work to be done.

We also showcase and share some proposals. How might the industry re-think current Buy Journeys and the current tug of war which exists between platform and asset manager? Our Fund Snapshots make the case that a small amount of understanding is better than none. Do we prefer our customers to be approximately right or perfectly wrong?

 
Delve into your toolkit for improving consumer confidence

 

What information do investors actually look for?

There are six key facts investors want to know to assess the suitability of a fund.

Factsheets provide information that speaks to these requirements, but often not in a way that is useful to investors. Download the white paper to find a better way.

 

How can we explain charges so customers understand? 

Transparency is not the same as clarity. AMCs and OCFs mean little, and multiple share classes only confuse. 

Design can help communicate how these various component parts of an overall fee relate to each other, and how they should be added up for a single all-in fee.

 

How can we visually explain basic investing concepts?

This is the Boring Money Global Equity fund. It is immediately clear to consumers what investing in this fund means.

Discover what good looks like when explaining other concepts with 8 mocked-up designs for improving disclosure and understanding.

Scroll back up to download your free copy of
Financial Communications Are Broken

 


 

Planning a 2020 overhaul?

Products

  • How do investors select funds?
  • What are their buying intentions?
  • Passive v active
  • ESG considerations
  • Multi-asset
  • Robo/solutions

Communications

  • What is read?
  • What is understood?
  • What knowledge is required?
  • Are objectives understood?
  • How is performance judged?
  • What does good look like?

Confirm what retail customers want with our Q4 report

Our Q4 2019 report, What Retail Customers Want: Products and Communications, will explore how buying decisions are made and what investors want from communications. 

Coming late November 2019

 

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