Clients want better investment management, survey finds

While generally satisfied, wealthy investors expect better returns and more value.

Wealthy clients are generally satisfied with their advisers but they want more in terms of investment returns and value for fees, a new survey from the Investments & Wealth Institute found.

The group, formerly known as IMCA, found that investors who had at least $500,000 in investable assets and work with an adviser, reported satisfaction levels in the high 70 percentage point range on measures of trustworthiness, ethics and knowledgeability.

On more technical, quantifiable measures tied to investment management, however, investors are seeking more from their advisers, according to the survey of 585 wealthy investors.

About 75% said that long-term investment returns are important to them, but only 60% reported being satisfied with performance. Other gaps were found in value relative to fees, with 67% of investors reporting this is important to them, while about 53% said they were satisfied with the value they get for their fees paid.

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When asked what they are paying their adviser to do for them, about 59% said investment management, 46% reported financial planning, 36% said wealth management and 35% said retirement solutions. The responses were mirrored when clients were asked to rank the importance of these four types of support and services provided.

“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, executive director and chief executive of Investments & Wealth Institute. “Clients expect expertise at higher levels than ever, and in order to close the satisfaction gap, advisers must identify ways they can bolster their knowledge to drive tangible outcomes.”