In August, Dalbar, an investment research firm, surveyed 995 investors in North America who had a relationship with a financial advisor, presenting them with questions about their experiences with investing, the markets and their advisor during the coronavirus market crisis and months that followed.
“In 830 of those cases, the investor agreed that their account balance is higher today because of the help of their advisor during the crisis,” Dalbar’s chief marketing officer Cory Clark said in a statement. “That says something quite remarkable about the value of professional advice.”
The survey found that some nine in 10 investors reported a significant or slight increase of both confidence and trust in their advisor as a result of the pandemic, and were more likely to retain their advisor.
Eighty-three percent reported that their account balance was higher today, thanks to their financial advisor’s help.
Investors who said they had followed their advisor’s recommendation to increase investment reported the highest satisfaction in their advisor, while those who followed advice to do nothing reported the lowest satisfaction.
Most investors in the survey said they had received proactive communication from their advisor during the market crisis.
Before the onset of the crisis, two in five investors said they received monthly communication from their advisor, a quarter reported quarterly and a fifth annual communication. Thirteen percent said they heard from their advisor less than once a year.
Fifty-three percent of respondents reported that their advisor had contacted them during the worst of the crisis at the time they needed it most, while 47% said their advisor had not communicated with them during the crisis when they needed it most — or failed to get in touch at all.
According to the survey, four in five investors received email from their advisor, more than half got a phone call and one in three a text message.
Sixty-nine percent of investors offered two-way communication, and 52% of investors accepted it.
Dalbar noted that investors who received proactive communication from their advisors showed much higher satisfaction than those who did not, regardless of frequency or time.