In a global survey of nearly 19,000 investors conducted across eight countries titled Global Investor Insights, Dimensional Fund Advisors found that ‘investment returns’ was only considered by investors as the fourth most important value in their relationship with their adviser.
Investors rated ‘sense of security/peace of mind’ as the most valued benefit in their relationship with their adviser, followed by ‘knowledge of my personal financial situation’.
“Investors may attribute peace of mind to many aspects of their adviser relationship – and we believe that sense of security is an outcome of an adviser setting the right expectations,” Dimension co-chief executive and head of global financial services Dave Butler said.
According to Dimensional founder and executive chairman David Booth, peace of mind is “what success is all about”.
“Achieving returns in a way that enables people to relax just a little bit more is very important to us and also to investors,” he said.
Client service experience was the foremost important attribute of an adviser (31 per cent), with the second attribute being ‘experience with clients like me’ (26 per cent).
These findings will be no surprise to the many successful advisers that are continually told be certain sections that they need to change their business model. Peace of mind, good service and experience with managing clients pretty much sums it up. How can a bank with constant adviser turnover, industry funds with no client engagement and impersonal internet solutions compete with these attributes ?
Large advertising budgets and strong political influence.