The savings management industry does not at all satisfy Europeans concludes the annual survey of the European Commission stating that the investment industry, and particularly services related to pension savings, came last of 32 on the services satisfaction index.
BETTER FINANCE confirmed this bad result by reporting that European investment funds have returned 1.2% less than their benchmark index (the pan-European Stoxx Europe TMI). As for diversified funds, they are not even able to compensate for inflation, generating a loss of 0.1%. BETTER FINANCE logically concludes that the investment industry does not produce added value for investors. Moreover higher costs in terms of account management fees don’t translate into a better service to the client… on the contrary!
For this reason BETTER FINANCE asks for measures to ensure a wider distribution of inexpensive funds, a better training of intermediaries who sell these products and a better control of conflicts of interest.
More broadly, BETTER FINANCE requires better regulation of investment advice and requests that fund managers be remunerated based on their performance, as a percentage of returns on investment, and bear all transaction costs in order to better align their interests with those of the investors.
In conclusion, the organization wishes for the entire sector and all its intermediaries to be obliged to act in the client's interest.
Read the full article in French here.