Fidelity, Russell Surveys Find Disparity in Advisor-Client POVs

“With the average age of advisors increasing, the younger generation of brokers and advisors have an opportunity to differentiate themselves through their communications approach and attract new clients –specifically, clients under 50 who are most actively using technology,” he added.

An aptitude for technology isn’t the only thing millionaires are looking for from an advisor. The top three benefits cited by millionaires who already have an advisor are superior performance, wealth protection and access to investments.

Russell Investments’ Financial Professional Outlook supports Fidelity’s conclusion that advisors are not on the same page as their clients. In a report released Wednesday, Russell found that while advisors want to focus on issues like performance, inflation, estate planning and taxes, their clients are focused on larger concerns about government policy, market volatility and global events.

Like the Fidelity survey, Russell found advisors are far more optimistic than their clients, but noted that the gap hasn’t changed much in several quarters. While three-quarters of advisors say they feel optimistic about capital markets for the next three years, just 29% believe their clients are also optimistic. Russell found a sentiment gap of 48% in May 2011, down just slightly from 51% in November 2010.

“Some of advisors’ optimism stems from their sources and advisors’ own abilities. They’re experts, and should understand” economic indicators, Kristin Gibson, director of strategic partnerships for Russell Investments, told AdvisorOne on Friday. Furthermore, “advisors have tools that show they have reasons to be more confident, while clients only have the media,” she added, where information may be limited to headlines and snippets.

Russell found that most advisors believe their clients come to them first for advice, but noted that 92% of advisors said their clients bring ideas to them from news and media sources.

“When we see where clients are getting their ideas,” according to the report, “this seems to conflict with how advisors view their role in client relationships.”

“If you look at the big picture,” Gibson noted, “there are concerns, but it’s not the terrible economic picture the media leads investors to believe.”

The most important thing for advisors to remember, she said, is to acknowledge their clients’ fears and realize that even though they have the information and expertise to recognize that the economy is not as bad as their clients imagine, “to investors, it’s a real concern. Advisors need to educate their clients and understand how it truly impacts the big picture for them.”