J.D. Power's Groundbreaking 2025 Active Fund Satisfaction Survey
In a notable first, J.D. Power Japan has published the results of its 2025 Active Fund Satisfaction Survey aimed at individual investors. The organization, renowned for its extensive studies in customer satisfaction, aims to shed light on the preferences and satisfaction levels of individuals investing in active funds.
With prolonged low-interest rates, the significance of asset formation in the context of a '100-year life' has risen sharply in recent years. Additionally, the expansion of the NISA (Nippon Individual Savings Account) system has spurred a growing interest in personal investments among individuals. Understanding the risks associated with investment products and selecting strategies that suit personal risk tolerance is crucial. Given the rise in individual investors, the proper assessment of their diverse needs, regarding experience, risk tolerance, and compatibility with asset management companies, is becoming increasingly necessary.
As of now, the domestic market hosts nearly 6,000 active funds. Yet, systematic data on how individual investors choose these funds, their satisfaction levels, and the information and support they require is scarce. Recognizing this gap, J.D. Power embarked on a comprehensive survey to capture individual investors' experiences and evaluations concerning their active funds.
Visibility into Individual Investor Satisfaction
In measuring overall satisfaction, the survey identified four key factors: 'Investment Strategy', 'Performance', 'Information Provision', and 'Costs'. Statistical analysis indicates that 'Performance' carries the most weight in driving overall satisfaction at 47%, followed by 'Investment Strategy' at 24%, 'Costs' at 16%, and 'Information Provision' at 12%. This highlights that individual investors prioritize tangible returns and the stability of fund prices when selecting funds. However, the risks associated with investment strategies, cost considerations, and reliable information also significantly influence satisfaction levels.
Interestingly, while fund selection often centers around 'Performance', the satisfaction perspective reveals the need for a multifaceted approach. A robust satisfaction level is cultivated by fulfilling various elements, including clear investment strategies, transparent costs, and adequate information provision.
Correlation Between Satisfaction and Investment Philosophy
The survey evaluates individual investing satisfaction on a 1,000-point scale, categorizing responses to analyze trends between high and low satisfaction levels. Those individual investors expressing high satisfaction were found to be more aware of their fund's 'investment philosophy' and felt a strong appeal towards it. This suggests that individual investors resonate with the beliefs and values underpinning investment decisions made by fund managers, rather than solely focusing on performance metrics. This pattern is particularly evident among long-term investors, hinting that clear philosophies foster stronger trust relationships.
Moreover, investors exhibiting high satisfaction demonstrated considerably stronger intentions to continue holding their funds, pursue additional purchases, and recommend them to others. This connection between satisfaction and empathy towards investment philosophies indicates a positive cycle of recognition and acquisition of new customers in the active fund market.
J.D. Power's Findings on Active Fund Satisfaction
As part of the survey, J.D. Power announced rankings for overall satisfaction among active funds:
Funds with Total Assets Over 700 Billion Yen (7 Funds)
1.
Invesco World Select Equity Fund (No Currency Hedge) (Monthly Settlement) - 631 Points (Highest ratings in 'Performance', 'Investment Strategy', 'Information Provision')
2.
Asset Management One Global High-Quality Growth Stock Fund (No Currency Hedge) - 617 Points
3.
AllianceBernstein U.S. Growth Stock Fund Class D (No Currency Hedge, Forecast Distribution Type) - 616 Points
Funds with Total Assets Between 350 Billion and 700 Billion Yen (9 Funds)
1.
Season Global Balance Fund - 658 Points (Highest rating in 'Performance')
2.
Morgan Stanley Global Premium Equity Fund (No Currency Hedge) - 650 Points
3.
Sawakami Fund - 646 Points
Conclusion and Insights
J.D. Power's 2025 Active Fund Satisfaction Survey, conducted online with 3,570 respondents, dissects factors impacting overall satisfaction. This data, collected annually, aims to guide individual investors in making informed decisions about their asset management.
Important Notes
- - The information provided in this survey is not to be construed as investment advice. Investors should make decisions at their own discretion.
- - All surveys published by J.D. Power are independently designed and implemented by the company itself, reinforcing its role as a reliable third-party evaluator in consumer satisfaction.