ow do clients chiefly judge the value of the relationship with their financial adviser? Feeling a “sense of security” or “peace of mind” is the top answer, at least according to research carried out by Dimensional Fund Advisors earlier this year.
Dimensional Fund Advisors surveyed nearly 19,000 investors in the USA, Europe, Canada, New Zealand, UK, and Australia. Despite the geographical differences, they found shared values and opinions. In other words, it’s likely that what matters to an investor in Wellington, Somerset, also matters to an investor in Wellington, NZ.
The results reveal that investors are not solely focused on investment returns or statement balances, with peace of mind and working with an advisor who understands their personal situation ranking higher.
Investors were asked how they primarily measured the value they received from their adviser. The top 4 responses were:
|Sense of security /peace of mind||35%|
|Knowledge of my personal financial situation||23%|
|Progress towards my goals||20%|
Kingshield’s client adviser, Lester Luey, is not entirely surprised by these results. “In my experience investing is not just about rationale and logical decisions,” he explains. “The strength of the client’s relationship with their financial adviser plays a critical part in the investment process by giving clients the confidence to invest, and move towards their investment goals and objectives.”
The survey’s results would also seem to underline just how important is the human side of someone’s relationship with their financial adviser, as Lester observes. “Clearly empathy, approachability, integrity and flexibility are needed in order for that relationship to flourish long-term. These are qualities we value very highly here at Kingshield,” he adds. “It’s reassuring to learn that our mindset is reciprocated by clients.”
To read Dimensional Fund Advisors’ survey results in depth, please visit http://us.dimensional.com/2017-investor-survey-insights