A survey released today by the Securities Industry Association shows that the overall confidence of investors in the securities industry and brokers remains nearly as high as in previous years, despite sharp drops in market performance and the economic impact of the September 11.

However, investors are increasingly less satisfied with the performance of their portfolios, and are less generous with their praise for the industry.

Most investors (62%) say they have a “very” or “somewhat favorable” opinion of the securities industry, which is flat from last year. But fewer investors have a “very favorable” opinion of the industry than last year (22% this year, compared to 29% in 2000).

Ninety-one per cent of investors surveyed this year say they are “very” or “somewhat” satisfied with their brokers’ services, valuing both the amount of time and the quality of counsel that their brokers provide in helping them to make financial decisions. This is down from 95% last year.

“This has been a tough, challenging year for investors and the industry,” said Mark Sutton, SIA’s chairman and president, Private Client Group, UBS PaineWebber. “Despite these difficulties, investors hold the industry in high regard. This is particularly true for those interviewed after September 11.”

This year’s survey, Sutton said, was particularly significant because it was the first time that investors had been interviewed during a period of considerable market decline..

Investors report that their expectations for investment returns are lower than last year (down to 11% from 15%), but remain optimistic despite the market’s pullback.

Their confidence in next year’s investment climate has fallen compared to previous years, with only 28% expecting 2002 to be a “very good” or “good” year for investments, compared to 41% who thought the same would be the case when they were surveyed in 2000.