Financial Success Not Related to Size

CHICAGO (HedgeWorld.com)-A new survey gives hope to small and midsize investment firms looking to serve high-net-worth individuals.

Wealthy individuals are more interested in a firm’s reputation and skill than in its size when selecting a financial firm, according to a survey conducted by Click Communications Inc., a marketing company. But once a financial firm snares a client, the quality of customer service becomes important, overshadowing matters such as low fees or performance. “To get the business, you need an impeccable reputation; to keep it you need good customer service,” said Julie Simard, director of research services for Click.

And forget the concept of one-stop shopping. “People do not want to do banking with their insurance company,” Ms. Simard said. That means niche players, such as hedge fund firms, can still make headway with investors when competing with large financial firms. The important thing is to be good. “Do what you do best,” she said.

She noted that large financial firms can offer products in different arenas, but they’d be better off creating separate brands that stand on their own, because individuals want to buy from a company focused on a single product.