UHNW Most Loyal Clients, Study Says
Ultra-high-net worth investors are the most satisfied with their advisors of any group and a full 60% would move with their advisor if he or she left their current firm, according to a new study.

While 60% would move with the advisor, 40% would stay with the firm because they value the the safety and brand name of the company, according to Spectrem Group's third-quarter report, Relationships with Advisors

Among ultra-high-net-worth investors, those with $5 million to $25 million in investable assets, 80% are satisfied with their advisors, compared to 76% of millionaires (those with $1 million to $5 million) and 66% of the mass affluent (those with less than $1 million).

Among those who have developed a financial plan with their advisor, 95% are satisfied or very satisfied with the plan. An additional 68% say they would recommend their advisor to a family member or friend.
The report said this is understandable since high-net-worth investors receive the highest levels of service from their advisors.

While 68% of the nearly 500 respondents surveyed-76% were either retired or semi-retired-say they feel professional registrations and licenses, such as CFP and CFA, are important, 99% say honesty and trustworthiness are the most important characteristics in an advisor.

At the same time, only half of ultra-high-net-worth investors have considered tax advantaged strategies with their advisors, a situation that may change in the future as tax considerations become increasingly critical, according to Spectrem.

Although they are satisfied with their advisors' work, the ultra wealthy still control 43% of their investments without professional help, the survey shows, and another third of the assets are controlled by the investor with the help of an advisor. The majority, 68%, uses only one advisor while 27% use two.

It seems the ultra wealthy are satisfied with what they pay their advisor, as 67% say they are comfortable with the fees they pay and an almost identical number, 66%, say they prefer fees for advice rather than paying commissions on product sales. For those paying fees, 60% want to pay a fixed fee for services rendered, as opposed to paying a percentage of assets under management.

-Karen DeMasters


On The Move

Glenmede has hired industry veteran Jon Stanley as a senior portfolio manager for their New York office. Previously a managing director at U.S. Trust Company, Stanley oversaw more than $1.5 billion of assets under management for high-net-worth investors.

Bank of the West wealth management announced that Brian Katz has joined the firm as senior vice president. Katz will lead the newly created banking and sales strategy team, which is responsible for developing a distinctive range of deposit and loan products tailored for the needs of affluent and high net worth clients. 

-Kathy Lynch