A survey from the Securities Industry Association says that optimism about the investment climate has risen to its highest level in four years.
Forty-six per cent of investors say they think the coming year will be “good” or “very good” for investing, up from 29% in 2002.
The 2003 Investor Survey reveals that although investors continue to have high expectations for investment performance, they have grown more realistic. On average, investors expect an annual return of 10%, compared with a high of 33% in 2000.
Investors continued to give high marks for the services provided by their broker/financial adviser, underscoring the value that investors say they continue to place on their industry relationships. Eighty-eight per cent of investors who use brokers/financial advisers said they are pleased with the service they received, with 74% saying the services are “good value for the money.”
When asked about specific broker-dealer qualities such as account access, responsiveness, and useful advice, investors gave higher marks this year than last for those services.
After dropping sharply last year, attitudes toward the securities industry have stabilized, with a majority of investors — 55% — reporting “very” or “somewhat” favorable attitudes toward the securities industry.
“As investors return to equities, encouraged by the market’s strong upturn and extensive accounting and corporate governance reforms, SIA’s annual investor survey shows that they are giving better marks to their brokers/financial advisers and the services provided,” said SIA 2003 chairman John Schaefer. “While that is encouraging, the survey also indicates that our industry needs to continue doing all that we can to address issues of public trust and confidence.
The sample group interviewed consisted of investors who were age 18 or older with household incomes of US$50,000 and above and financial assets of US$100,000 (excluding a home) or more. Those interviewed were either the primary decision-maker regarding financial investments or shared joint responsibility. Approximately 1,500 surveys were completed between August 22 and September 16. The sampling error is plus or minus 2.5%.