It depends on your point view: Nearly three years after the onset of the financial crisis, 63% of ultra high-net-worth investors are “fully satisfied” with their advisor relationships, whereas 95% of advisors find their firm’s clients are fully satisfied. The Institute for Private Investors (IPI) uncovered this gap in perceptions in an April survey of investors and advisors released Thursday.
Charlotte Beyer, IPI’s founder and chief executive, said in a statement that investors today are taking a much more active role in overseeing their investments and those who are working in partnership with their advisors report greater satisfaction.
“We are seeing a clear trend toward engaging in more of a partnership with the advisor, a natural evolution as investors learn more about due diligence in the aftermath of the financial crisis,” Beyer said. “Investors are realizing they cannot abdicate the ultimate responsibility for overseeing their wealth. At least for ultra-wealthy clients who have taken a more active role, the relationship is on a solid footing. Advisors have longer-lasting relationships with investors who wish to be a partner in a dialogue.”
The IPI survey, “Both Sides Now: Perceptions of the Advisor-Investor Relationship,” also demonstrated a growing trend among investors of diversifying across multiple firms. Sixty-nine percent of investors said they relied on a primary advisor for overall advice. While 50% said they relied on one firm, 19% said they used more than one firm in the role of primary advisor.