AI, ESG and DE&I Among Top Investor
Considerations
ST.
LOUIS, Oct. 26, 2023 /PRNewswire/
-- FleishmanHillard today launched The Future of Asset
Management: Global Report 2023. The new report examines the
communications trends shaping retail investor perceptions, along
with the expectations of the global asset management industry amid
market volatility and the rapidly changing landscape of how and
from whom investors get investment information and advice.
Based on a survey of more than 2,000 retail investors in
the United States, Europe and Asia
Pacific, the report finds that artificial intelligence (AI),
environment, social and governance (ESG), diversity, equity and
inclusion (DE&I) and transparency are among the top
considerations for investors.
"The asset management industry has been going through a period
of unprecedented change," said Thomas J.
Laughran, senior vice president and partner, Financial and
Professional Services practice lead. "Markets have been buffeted by
first the pandemic and then rising interest rate shocks. Cultural
and regulatory shifts have focused greater attention on ESG,
DE&I and how investments are marketed and deployed. Information
sources and investment management options have proliferated as a
result of technology and social media.
"Around the world, investor expectations of how, when, where and
why they engage with investment and financial services' providers
are continuously evolving in this dynamic environment. Amid the
uncertainty, investors across the globe are increasingly seeking
transparency, authenticity and accessibility in how the industry
engages, informs and communicates with them."
Among the key findings by region:
United States
- Despite a contentious political climate, more than three
quarters (78%) of U.S. investors cite DE&I policies and
commitment as important considerations in selecting a financial
advisor. More than two thirds (73%) expect clear and transparent
ESG policies, goals and commitments to be public and
accessible.
- Though the use of ChatGPT/AI may still be in its infancy for
retail investors, some 60% of U.S. investors say they have already
used ChatGPT or AI tools for investment-related decisions.
- More than 90% of U.S. investors select performance and
credibility as driving factors in selecting a financial advisor, on
par with transparency in communication and fees.
- For U.S. investors, news and financial media are the most
common sources for information on investment funds and products,
outweighing even financial advisors and asset managers.
Europe
- In Germany, France and the UK, investor appetite in the AI
sector is high, attracting more interest than all other sectors.
However, use of AI tools in investing lags, especially in the UK
where just 28% of investors have used AI tools, lowest among all
the markets surveyed.
- European investors place great importance in ESG considerations
and are particularly wary of false claims or promises.
Approximately three-quarters of European investors say they won't
invest in companies alleged to be engaged in
greenwashing.
- Although over half of respondents in the UK say they manage
their own investments, just 7% say that they are "very
knowledgeable."
- In contrast to their U.S. counterparts, European investors are
more likely to turn to financial advisors to inform their
investment strategy, with brand/reputation and performance scoring
as the most important factors in their choice of an asset
manager.
Asia Pacific
- Inflation/stagflation and geopolitical tensions are the biggest
concerns among investors across the four Asia Pacific markets (China, Hong
Kong, Singapore and
South Korea) surveyed. Investors
in South Korea and China are less likely than their Hong Kong and Singapore counterparts to reduce their risk
appetite in response to business activities resuming after the
COVID-19 pandemic.
- Nearly half of respondents across the Asia Pacific market turn to social media as a
trusted source of financial information, higher than U.S. or
European investors, while online platforms slightly edged out
financial advisors and banks in most markets for sources for
investment management.
- ESG considerations are on the rise across Asia Pacific with large majorities of
investors in each market eschewing investment in companies that
engage in greenwashing, are accused of violating human rights or
fail to live up to their ESG commitments.
To learn more, download The Future of Management: Global
Report 2023.
FleishmanHillard's The Future of Asset Management: Global
Report 2023 includes qualitative and quantitative data.
FleishmanHillard TRUE Global Intelligence fielded an online survey
of 2,000 investment professionals in mainland China, the Hong Kong SAR, Singapore, South
Korea, France, Germany, UK and United States between
April 27 and June 6, 2023.
About FleishmanHillard
FleishmanHillard specializes in public relations, reputation
management, public affairs, brand marketing, digital strategy,
social engagement and content strategy. FleishmanHillard was named
2021, 2022 and 2023 Campaign Global PR Agency of the Year; 2021
PRovoke Global Agency of the Year; 2021 ICCO Network of the Year;
2022 and 2023 PRWeek U.S. Agency of the Year and Outstanding
Extra-Large Agency of the Year; 2023 Campaign US PR Agency of the
Year; 2021 PRovoke APAC Consultancy of the Year; and 2021
PRWeek UK Large Consultancy of the Year. FleishmanHillard
is part of Omnicom PR Group and has nearly 80 offices in more
than 30 countries, plus affiliates in 45 countries.
About
Omnicom PR Group (OPRG)
Omnicom PR Group (OPRG) is the largest global network of
communications and consulting agencies in the world. It is home to
three of the top global PR agencies FleishmanHillard, Ketchum,
Porter Novelli and more than a dozen
specialist agencies in corporate and public affairs, political
consulting and advertising, language strategy, global health
strategy and organizational transformation. OPRG is part of Omnicom
Group Inc. (NYSE: OMC). www.TeamOPRG.com.
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SOURCE FleishmanHillard