Nearly one-third of CEOs said they will never entirely trust their mutual fund due to scandals currently plaguing the industry, according to TEC Internationals quarterly survey of chief executives.
The survey, completed in late November, polled nearly 1,000 CEOs nationwide with 31% of the participants saying theyve lost faith in funds due to market timing, late trading and questionable sales practices. Those 277 respondents specifically said: "I feel I will never entirely trust my mutual fund."
When asked how they felt about the recent mutual fund trading scandals, a whopping 59.5%, or 532 respondents, of CEOs said the mutual fund industrys actions will have no effect on their investments and that they do not plan to change anything because of it.
A mere 55 people, or 6.2%, said they plan to stop investing additional money, while 3.4%, or 30 respondents, said they plan to withdraw existing investments due to the transgressions.