Millionaires to advisers: Thanks for limiting our losses

A survey of millionaires showed that a majority believed their financial advisers limited their investment losses last year.

A survey of millionaires showed that a majority believed their financial advisers limited their investment losses last year.
According to the survey from Fidelity Investments, 76% reported that their losses would have been more severe, had they not been working with an adviser.
“They are happy with their advisers and credit them for protecting their assets and minimizing losses,” said Katia Walsh, vice president of market research at Fidelity of Boston. “They feel their advisers helped them feel more comfortable and helped them cope with the financial crisis.”
The survey conducted in February by Richard Day Research Inc. of Evanston, Ill., reflects the views of 1,000 investors who had at least $1 million in assets.
Those who worked with advisers reported that average investible assets declined by 4%, to $3.86 million, from $4.01 million.
By comparison, those who did not work with advisers suffered an average 18% loss, to $2.82 million from $3.45 million, the survey found.
Fully 85% of the millionaires surveyed retained their relationships with their advisers throughout the financial crisis, and just 10% reported they stopped working with their adviser, noted the report.
Also, the millionaires said they wanted to hear more often from their advisers. A growing number preferred that advisers contact them through e-mail.
Fully 29% said they wanted more frequent communication, up from 20%, in the 2008 survey.
Roughly half (49%) preferred to be contacted by phone, while 27% preferred e-mail, up from 22% last year, Fidelity reported. However, 23% preferred in-person meetings and 1% wanted to hear through the mail.
Some of the respondents said they plan to invest more of their funds in stocks. For instance, 33% who work with advisers said they plan to increase their exposure to stocks in the next year, compared with 28% of those without advisers.
Also, 10% of those who worked with advisers said they planned to increase their alternative investments, compared with 5% among those who did not work with advisers.
Fidelity had assets under custody of $2.8 trillion as of May 31.