InvestmentsMay 29 2018

Information overhaul: Making investment data more accessible

  • Understand how data is currently presented on advised products
  • Consider the different ways to present this
  • Learn about recent industry initiatives on this front
  • Understand how data is currently presented on advised products
  • Consider the different ways to present this
  • Learn about recent industry initiatives on this front
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CPD
Approx.45min
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CPD
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CPD
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Information overhaul: Making investment data more accessible

The CFA Institute recently noted that trust levels among investors, both retail and institutional, had improved since 2016. A study published by the organisation found that younger investors tended to have greater faith: 55 per cent of those aged 25 to 34 trusted the financial services industry, compared with 49 per cent of 35 to 44-year-olds and 35 per cent of those aged 45 to 54 (see Chart 1).

However, Paul Smith, the institute’s president, stressed the need to keep with the times to maintain trust among this cohort. “Investors of every age are using technology more, and the smart use of technology increases their trust in the investment professionals with whom they work,” he says.

Boring Money, a consultancy, recently looked at the presentation of data for its Planet Investment event, and has argued that a focus on aesthetics should take a greater role in investment documents, in part because of the proliferation of consumer technology.

“Financial information can be boring to look at, especially in an age where people can ‘swipe left’ if things aren’t visually appealing,” the company said. “In 2018 we should have more tools than the humble pie chart and text-heavy tables at our disposal.”

The firm has explored several possible approaches. These include breaking a fund or investment portfolio down by holdings, as represented by company logos (see picture top left). It has also examined the reasons individuals invest, and asked whether investment professionals would be more relatable to consumers if they were to explain their background and personal interests.

Many say the investment industry has fallen behind when it comes to presenting data in an understandable fashion, and should look to other sectors for inspiration.

Dawn Hyams, head of investor insight and governance for research provider the Wisdom Council notes: “Some [companies] have become really good at doing graphics and representing charges for gas and electricity. When I think of Vodafone’s app, there are graphics showing how we have spent money and exactly how my 12-year-old is running up charges.”

Campaigners have urged industry participants to work together on this front. 

“We have divergence, but there should be consistency,” explains Mr Agathangelou. 

“How can you expect clients to compare and contrast [products] if they are not consistent? Every time there’s a variation in the approach, it’s an opportunity for the company to position its data the way it wants it to be seen.”

Ms Hyams adds: “To have genuine momentum, the change needs to come from the regulator, the companies involved and industry bodies.”

Not just a numbers game

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