Surveys
Investors Value News Analytics As "Game-Changer" - Refinitiv Study

Among some of the more eye-catching findings is that at least a third of the investors polled don't get much value from webinars. More than half, meanwhile, said news analytics can make a big difference to how they invest.
A study of more than 1,000 investors around the world finds that
54 per cent of them say that news analytics will dramatically
change how they choose to deploy capital, underscoring how data
offerings can create an edge.
Some 39 per cent of investors don’t think they are equipped with
the data and content they need to help them make investment
decisions, the report, based on research commissioned by Refinitiv, said.
The report said that there is "strong interest" in alternative
data to explore favoured sector opportunities. It also
said that "the most innovative firms will introduce these
non-traditional data sources, which give investors the edge by
offering valuable additional context to help them make their
investment choices."
“In the face of unprecedented change and uncertainty, the
importance of trusted and accurate data has never been greater.
Our research shows that investors across the board, whether
self-directed or advisory clients, have a growing need for a more
comprehensive data offering that spans traditional analysis and
non-traditional alternative data,” Joe Mrak, global head of
wealth management, Refinitiv, said.
“The industry will need to continue advancing in critical areas
such as ESG to empower investors to make decisions with
confidence.”
The 17-page report, Redefining Investor Data Needs, is
based on research commissioned by Refinitiv that surveyed 1,030
self-directed and advised mass affluent investors in September
2020, located in Australia, Canada, China, Hong Kong, Japan,
Singapore, Switzerland, the UK and the US.
In its concluding remarks, the report said: “The wealth
management industry should address the feedback of a large
minority of investors who have realised that they require a range
of content delivery channels. In some instances, clients want to
quickly digest insights, such as podcasts, videos and webinars,
but not everyone can. Crucially, content should include powerful
data and data-driven insights that will help investors inform
their investments choices.”
Sectors
The survey found that two-thirds (66 per cent) are focused on
pharmaceuticals and healthcare due to the development of new
COVID-19 therapies and vaccines; not far behind is technology (64
per cent), as remote working and virtual events seem set to stay,
and travel and hospitality remain “unloved” and are struggling to
bounce back from government-imposed travel restrictions and
lockdowns.
Inevitably, environmental, social and governance-driven
investment ideas make an appearance. Some 34 per cent of
investors globally are more interested in ESG investing than they
were six to 12 months ago.
Millennial investors' enthusiasm for ESG rises to 61 per cent.
Refinitiv noted that worries about firms “greenwashing” their
business to lure in ESG investors remains a hurdle.
Some 41 per cent of investors who are more interested in ESG say
that well governed companies perform better, the study said.
In this age of lockdowns and the use of web-driven communication
channels, one notable finding is that 33 per cent of those
surveyed don’t find webinars useful.
“Given the number of perceived virtual gatherings for the
foreseeable future, providers should question whether the
content, user experience, expert commentary or data underpinning
their webinars are falling short – or all of the above,” the
report said.
“There is interest in better access to a range of multimedia
content, including webinars, videos and podcasts, rather than
predominantly written insights in different formats. To meet this
demand, wealth management providers will need to integrate
high-quality data into multimedia content that can inform a broad
mix of delivery channels,” it said.
“But access to data and content is only one part of the story.
There is a worrying perception that many of the resources offered
are not that helpful nor do investors rely on them to make
portfolio decisions. Providers should therefore question why, for
example, more than a third of those who are invited to webinars
do not find them insightful – and what would improve their
ratings going forward,” it added.