Well over half of individuals who are working with a financial advisor are very satisfied with their relationship with the advisor, according Janus Henderson.

In fact, only 2% are dissatisfied with the relationship, Janus Henderson found through its recently released survey, “Investor Survey: Insights for a Brighter Future.”

Among investors working with a financial advisor, 65% are very satisfied with the quality of the relationship, and 33% are somewhat satisfied, the survey of 1,000 people with at least $250,000 in investable assets showed.

Those investors who said they are very satisfied with their advisors said three qualities are key to the relationship:

• Provides peace of mind that I'm on track to reach my goals (69%).
• Cares about me as a person, beyond just my financial situation (61%).
• Provides financial education and makes me smarter (56%).

However, investors are still nervous and it is politics and the upcoming presidential election that has many of them more worried than economic conditions, according to the survey.

Nearly half of investors said they are very concerned about the impact the 2024 presidential election will have on their finances, while persistent inflation, the risk of a recession, rising interest rates and poor stock market performance were of primary concern to smaller proportions of those surveyed.

“Despite investors’ concern about the 2024 U.S. presidential election, results haven’t historically been a reason to exit the capital markets. In fact, looking back at S&P 500 returns from 1937 through 2022, the average annual return was 9.9% in presidential election years, and 12.5% in nonelection years,” Matt Sommer, head of the specialist consulting group at Janus Henderson Investors, said in a statement.

One antidote to these worries is to active management, according to the survey.

Among respondents who own mutual funds or ETFs, 66% want active funds in their portfolio, with 29% preferring mainly active funds and 37% preferring an equal mix of active and passive funds. Only 17% said they prefer mainly passive funds, 12% have no preference and 4% were unsure.

“The active versus passive discussion has evolved beyond an either-or decision,” Sommer said. “With the prospect of higher-for-longer interest rates casting a shadow over future economic growth, investors are increasingly turning toward active management to mitigate risk in their portfolios and differentiate between good and bad companies as higher capital costs create new competitive challenges.”

Advisors can use a range of methods to keep in touch with their clients, according to the survey.

Among the ways in which investors have communicated with their advisor during the past six months, telephone (68%), in-person (54%) and email (53%) were the most common methods.  Just 28% of investors reported interacting with their advisor by video conference, however, the majority (52%) said they would be comfortable using video conference technology.

“As video conferencing becomes more entrenched in our everyday lives, geographical barriers are being diminished, providing advisors with an opportunity to tap into a much broader circle of friends, family members, entrepreneurs, and successful professionals as potential clients or referral sources,” Sommer said. “Investing in technology that delivers a seamless and frictionless experience for clients and prospects will be pivotal for (advisors’) future growth.”

An almost equal number of investors (34%) feel fearful about their finances as those who feel confident they can achieve their goals (36%).

Even though a significant number of investors said they are confident in their financial situation, 71% said investing has become more challenging over the past few years and nearly as many (61%) indicated that the cost of living is rising faster than their income and investments.

The survey showed that across all generations, investors’ appetite for improving their financial know-how is strong, as 86% of investors are very interested or somewhat interested in increasing their financial knowledge.  A desire to learn was particularly robust among younger investors with 96% of both millennials and Gen-Xers express meaningful interest in improving their financial education.