Data & Research November 8, 2010

Americans “Over” Worrying about Money

After two years of resolving to do better with their finances, Americans are putting relaxing and having fun at the top of their New Year’s resolutions list.
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TD Ameritrade’s Annual New Year’s Resolution Survey found that while “save more money” (65%) was included among the top three resolutions, “relax/reduce stress” (67%) and “have more fun” (67%) were the most popular responses. The opposite was true for last years’ resolutions (see Americans Vowing Better Financial Planning for 2010).  

Twenty-seven percent of respondents said they are less likely to make New Year’s resolutions about their personal finances this year than last year, with 50% saying it is because their health and well-being are simply more important this year, according to a press release. Thirty-nine percent of respondents also reported they’re in better financial shape compared to previous years.  

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“When the recession was at its peak in 2008 and 2009, fear and uncertainty drove a lot of people to act on their financial plans,” said Stuart Rubinstein, managing director, investment products, TD Ameritrade, in the announcement. “Today, we’re seeing a shift and while Americans are still striving to meet financial goals, they may feel confident enough in their financial standing to put relaxation and fun first in 2011.”  

More than half (55%) of respondents describe their financial outlook for 2011 as uncertain, but say they are hopeful the economy is on the rebound. This tempered, but optimistic outlook was most pronounced among younger respondents and women (58% among young adults ages 18-34, 60% of women), the press release said. Only 23% of all respondents reported they are pessimistic about the financial outlook.  

One thousand nine (1,009) adults participated in a telephone survey conducted September 18 ─ 20, 2010, by Infogroup | ORC of Princeton, New Jersey, on behalf of TD Ameritrade.
Data & Research November 8, 2010

Customer Service Critical to Asset Manager Success

A study found that institutional investors’ satisfaction with their investment managers is greatly influenced by client service and can be managed regardless of the economic climate or investment performance.
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According to the study, jointly conducted by Chatham Partners and Investment Metrics, 60% of overall satisfaction can be attributed to investment performance, but this can often be cyclical and unpredictable. In contrast, 40% of client satisfaction is attributable to service-related factors that can be delivered consistently.   

In addition, the research suggests that managing customer service is not a singular act, but rather a broad collection of activities that combine to create high overall satisfaction levels.   

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According to a press release, the top five factors, in order of importance, attributable to client service include:  

  • Market/investment knowledge of portfolio team
     
  • Clarity of investment reports 
  • Problem resolution skills of client service representative
     
  • Frequency of contact of client service representative 
  • Timeliness of investment reports 

The study also found clients tended to be highly satisfied with their investment managers and client servicing teams overall during long periods of high performance (68%) and short periods of under-performance (58%). Most clients (83%) were dissatisfied with their client service contact during long periods of low performance, while the majority of clients (66%) felt like they were treated as an “important client of the firm” during long periods of high performance.  

The majority of clients who were the most satisfied with their fee arrangements had either high performance rankings over longer periods (69%) or low performance rankings over shorter periods (61%). In contrast, less than 40% of clients were highly satisfied with their fee arrangements during short periods of high performance or long periods of under-performance, while nearly half of all clients were dissatisfied with their fee arrangements regardless of their performance rankings over a short period. 

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