(March 8 – 09:45 ET) – Mutual fund transaction confirmations can provide valuable information and enhance customer relationships, says a new survey by MDC’s Optus Corp. and Dalbar Inc.
More than 900 consumers were polled to determine their preferences for paper-based transaction confirmations. The study found that 96% of consumers demand a confirmation following a trade. Mail delivery is preferred. 98% of respondents open them immediately. 96% read the information carefully and 73% show the confirmation to someone else.
“I am shocked at the level of consumer demand for transaction confirmations,” says Louis Harvey, DALBAR’s President. “Frankly, I did not initially see the point of doing the study. We had no anecdotal evidence that there would be any consumer interest, let alone nearly universal demand. Obviously, consumers still want that piece of paper to confirm that their hard-earned money has been invested.”
The survey identified what some consumers want in a confirmation, including commissions or fees, unit values, fund company hours, performance reporting and a
description of a fund’s holdings. Financial advisors by contrast were found to be against including information about the funds’ past performance, other fund company products, and other services available from the fund company.
“It’s a delicate balance for fund companies who sell through brokers and dealers. On one hand, they must nurture those relationships with intermediaries through good communications. Yet at the same time, they jeopardize their relationships if they provide `irrelevant’ information,” says Optus president Jon Hantho.
-IE Staff