Talking Points

Reported by PLANADVISER Staff

Why Institutional Clients Leave An Investment Firm

The top two reasons institutional clients went elsewhere to invest in 2020 also dropped the most as priorities a year later. Over that time, performance had strengthened, and the ongoing trend toward fee compression had improved trust. Nine hundred seventy-six institutional investors were surveyed last October and November from 15 markets across the globe.

TOP REASONS IN 2020
  1. Investments underperformed
  2. Fees are too high
 TOP REASONS IN 2021
  1. Failure to adopt an industry standard voluntary code of conduct
  2. Disagreement over corporate views on social or political issues

Source: 2022 CFA Institute, “Enhancing Investors’ Trust: 2022 CFA Institute Investor Trust Study”