Study reveals what's important to wealthy clients
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There are three key things that are important to high-net-worth-individuals when they choose a financial advisor…and it’s nothing to do with ROI.
In fact, the things that matter to the wealthiest clients are all personal qualities possessed by those they seek to assist with their investments.
A study by the Investment & Wealth Institute asked people with at least U$500,000 in investible assets who work with an advisor and make or contribute to financial decision-making in the household.
The first key quality is ethical standards. 80% of respondents said this was vitally important when evaluating advisors. This was matched by trustworthiness (80%) and closely followed by knowledge (77%).
On these metrics, most respondents were satisfied. However, the levels of satisfaction were lower on technical issues.
For long-term investments, 75% said they were important to them but just 60% were satisfied with their advisors’ results. On fees, 67% said it was important but only 53% are satisfied.
“Practitioners who blindly rely on their firm’s model portfolios, outsourced asset allocation or new technologies substituting for their own investment knowledge and competence do so at their own peril,” said Sean Walters, CAE, chief executive officer, Investments & Wealth Institute. “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.”
Wealthy investors are also influenced by the credentials of their advisors and want to understand them and how they will benefit.
Fifty-four percent indicated that they would like more information about which designations/credentials their advisor holds, as well as what they mean.
In fact, the things that matter to the wealthiest clients are all personal qualities possessed by those they seek to assist with their investments.
A study by the Investment & Wealth Institute asked people with at least U$500,000 in investible assets who work with an advisor and make or contribute to financial decision-making in the household.
The first key quality is ethical standards. 80% of respondents said this was vitally important when evaluating advisors. This was matched by trustworthiness (80%) and closely followed by knowledge (77%).
On these metrics, most respondents were satisfied. However, the levels of satisfaction were lower on technical issues.
For long-term investments, 75% said they were important to them but just 60% were satisfied with their advisors’ results. On fees, 67% said it was important but only 53% are satisfied.
“Practitioners who blindly rely on their firm’s model portfolios, outsourced asset allocation or new technologies substituting for their own investment knowledge and competence do so at their own peril,” said Sean Walters, CAE, chief executive officer, Investments & Wealth Institute. “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.”
Wealthy investors are also influenced by the credentials of their advisors and want to understand them and how they will benefit.
Fifty-four percent indicated that they would like more information about which designations/credentials their advisor holds, as well as what they mean.
