Investec Asset Management, the fund management division of Investec, the South African bank, has surveyed investors placing money into one o...

Investec Asset Management, the fund management division of Investec, the South African bank, has surveyed investors placing money into one of its trusts to find what means of communication had persuaded them to invest. The survey has shed some light on how investment houses can communicate more effectively with potential investors. The survey was sent to approximately 2,000 investors who opted for the Investec Temple Bar investment trust. Out of the 194 respondents, 63 per cent were made aware of Temple Bar either via a newspaper or magazine. Of the 63 per cent - which added up to 122 investors - almost half referenced that they had read either a review or article about the fund, while only 20 per cent specified that they had seen an advertisement. Some 11.3 per cent followed the financial advice or stockbroker route; 6.2 per cent were told by a family member or friend; 4.6 per cent relied on personal research; 3.6 per cent came in by inheritance and 2.6 per cent had a past business connection with Temple Bar. The study also revealed that the long-term performance of the trust is the main driver behind attracting new business and, more specifically, the level of dividends paid to shareholders. Almost 50 per cent of those surveyed cited dividends as their reason for investing whilst a further 33 per cent said consistency in performance was the most important aspect. The results reflect Investec’s long-term commitment to its investors and the excellent track record of the fund’s manager, Alastair Mundy, who also manages the Investec capital accumulator Trust (ICAT), the Investec Cautious Managed Fund and the Investec UK Value fund. Mimi Ferrini, head of investment trusts for Investec Investment Managers, said: “We found it interesting that investors rely far more on the press rather than advertising, which suggests that our clients have conducted a significant amount of their own research and are unwilling to take the advertised benefits of a product at face value.”