Index reveals loss of faith in US
A key index of investor sentiment, the CFA Institute Finance Market Integrity Index, has revealed a deterioration in trust in hedge fund managers and corporate boards and a reluctance to recommend investment in the US.
The index, the results of which were released this month, gauged the perceptions of the state of ethics and integrity in six different markets around the world and recorded a strong drop in the ratings of corporate boards and corporate executives over the past 12 months.
As well, it revealed fewer than half of those surveyed within the US would be likely or very likely to recommend investing in US markets, while those living outside the US were even less likely to recommend such investment.
The index analysis said those outside the US appeared to have lost a significant amount of faith in US market systems.
Commenting on the index, CFA Institute Centre managing director Kurt Schacht said it had been instructive to see how ethics ratings changed in a year of economic crisis.
“While somewhat expected, it is troubling to see how significantly ethics factors have deteriorated overall as a reflection of trust and confidence in markets,” he said. “Both practitioners and regulators need to take notice.”
AUTHOR
Mike Taylor
Recommended for you
The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call.
Two national advice businesses have merged to form a leading holistic advice business with $2.5 billion in funds under management.
Insignia Financial has completed its transition of a range of administration and technology functions to SS&C Technologies as it seeks to be a leading wealth manager by 2030.
ASIC has permanently banned a financial adviser after he allegedly concealed information from clients and misused client funds, among other breaches.
