A recent report from financial analytics firm Kidbrooke has revealed significant shortcomings in the communication practices of many fund companies.
The ‘Fund Information Review 2024′ found that seven out of ten fund companies are failing to provide easily accessible information to consumers and investors, raising concerns about transparency and customer experience.
Speaking to Finansmarknaden about the new report, Kidbrooke CEO Fredrik Davéus said, “The majority would need to improve and would benefit from it.”
The survey, which analysed 68 fund companies, highlighted a significant reliance on PDF documents scattered across websites, making it hard for users to locate key information. “The vast majority have the information spread out in a number of pdfs that you have to click around on the site to find. You can see that they have created the PDFs to comply with the regulations, but as a non-expert, the information is difficult to follow,” Davéus told Finansmarknaden.
Key statistics from the Fund Information Review 2024 include:
- 9 out of 10 fund companies lack easily accessible information on currency exposure.
- 8 out of 10 lack source references for displayed information.
- 7 out of 10 fail to provide readily available information on geographical distribution and sustainability.
According to the report, accessible information on aspects like risk level, fund content, and sustainability should be standard practice. However, many companies are lacking in this area. Key areas of concern include transparency around currency exposure, source references, and distribution between stocks and interest rates. Additionally, geographical distribution and sustainability information are often hard to find.
One notable shortfall is the lack of clarity regarding how funds compare to relevant indices. “One thing where there are often shortcomings is that the companies are bad at showing what they compare themselves to – which index they follow and how the fund works relative to that,” Davéus explained.
Despite these widespread issues, the report found some variation between companies. Larger firms generally fared better in making information available compared to smaller counterparts. Nordea emerged as a top performer, receiving the highest score of 10, while AMF Fonder followed with nine points.
Conversely, companies like Pareto Asset Management, Storebrand, Carnegie, and Brummer & Partners were among those scoring the lowest, with some receiving as few as zero points. According to Kidbrooke’s analysis, 19 fund companies failed to earn any points.
Kidbrooke, founded in 2011, offers financial analytics APIs designed to help banks, insurers, and wealth managers build seamless customer experiences. Their core API, OutRank®, enables financial institutions to streamline customer journeys with ease and efficiency. Headquartered in Sweden, with a regional office in the UK, Kidbrooke remains dedicated to helping individuals make informed financial decisions.
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