Investors Want Proactive Communication from Advisers

Financial advisers who help clients to understand the impact of the markets have more satisfied clients, a recent survey suggested.

The survey by Genworth Financial Wealth Management found that nearly two-thirds (64%) of individuals who said an adviser helps them understand market impact are extremely satisfied, while nearly three-quarters (73%) of those who said an adviser does not help them understand the market impact are dissatisfied. Respondents who indicated their advisers are more vocal are more likely to be “extremely satisfied” with their services. Of the respondents who said their adviser is “not very vocal,” 58% are not “extremely satisfied” with services, while 32% are.

Meanwhile, the survey didn’t find a direct correlation between a client’s satisfaction and the number of years an adviser has retained the client. Genworth Financial Wealth Management said those results underscore the need for advisers to raise the bar and find new strategies to keep their clients happy.

“Last year’s financial meltdown showed we need new ways to approach investing and risk and better ways to communicate with clients,” said Gurinder Ahluwalia, president of Genworth Financial Wealth Management, in a release of the results. “Advisers who can talk in depth with clients about what is happening in the market and develop flexible strategies are more likely to have satisfied and loyal clients.”

Proactive communication also seems to correlate with more assets. Individuals who reported to be “extremely satisfied” with the level of service they receive from their advisers are more likely to have a higher proportion of total assets managed by an adviser, according to the survey. Of those “extremely satisfied with their adviser,” 35% reported that more than half of their assets are managed by an adviser. Those who are not “extremely satisfied” are most likely (45%) to have less than 25% of their assets managed by an adviser.

The survey was administered March 4 to 8 by Opinion Research Corporation (ORC) to 2,028 adults 18 years of age and older.