A new survey of high-net-worth investors released by the Investments & Wealth Institute (formerly IMCA) found that they were highly satisfied with their advisors and likely to continue their relationships. Education and credentials among advisors were valued overall, though respondents said that they found tangible outcomes to be lacking.
Most of the investors surveyed cited ethical standards in advisors as a priority, while trustworthiness and knowledge were also major considerations. However, there were gaps in overall satisfaction; 75% said that long-term investment returns are important to them, yet only 60% were satisfied with the results.
When working with advisors, about 75% of the investors said the levels of risk in their portfolios was an important issue, and 67% were satisfied with the results.
The study examined factors that influenced an investor’s decision when working with an advisor—where they’re satisfied and where they’re not and what advisors can do to stay relevant.
“Clients expect expertise at higher levels than ever, and in order to close the satisfaction gap, advisors must identify ways they can bolster their knowledge to drive tangible outcomes,” said Sean Walters, chief executive officer of the Investments & Wealth Institute.
Clients place the greatest value on investment management—59 percent said it is why they pay their advisor. Sixty-seven percent said that the value of services in relation to fees was an important issue, and 53 percent were satisfied with the value.
AbsoluteEngagement.com collected the results from 585 mass affluent and high-net-worth investors across the United States, targeting those with assets of $500,000 who work with financial advisors.