An increasing number of affluent investors say they are considering moving assets from their financial institution or adviser this year — and one reason could be that they feel ignored.
That's the big take-away from a recent survey of 1,290 investors with $100,000 or more in investible assets, according to Northstar Research Partners and brand firm Sullivan.
More than a third of those surveyed said they will consider moving assets from their primary financial institution, and 25% say they will consider moving assets away from their financial adviser in the next year. That's a big increase from 2009 in both categories, the researchers said. Younger investors, women and those with assets in the $250,000-$500,000 range are particularly likely to move assets.
It could all have something to do with how often their adviser gets in touch. Only 24% of investors who have contact with their advisers once a year or less called themselves very satisfied, compared with 63% who had more frequent contact and described themselves as very satisfied.
“Investors are feeling very unsure, and rely on their advisers,” said Barbara Sullivan, managing partner of Sullivan. The kinds of communication that impresses investors the most is when advisers reach out to them, take the time to review their portfolio and suggest changes that are appropriate, she said. They are also more satisfied when their adviser talks about long-term planning and gives investors a sense of their progress, so they know they are on track.
One reason investors may crave more frequent contact is that they consider their adviser someone they
trust. Nearly three-fourths of investors said they
trust their adviser, compared with 61% who said so in 2009. Sixty-four percent said they
trust personal communications from their advisor, more than three times more than said they
trust any other source of information.
Investors are feeling more cautious about investing this year, with 41% describing themselves as conservative, versus 22% in 2008. Investors under 42 said they had 42% of their portfolios in cash or the equivalent. That cautiousness goes along with a lack of confidence about meeting their financial and retirement goals, with only 19% saying they felt very confident about achieving their goals.
The fickle affluent may be following in the footsteps of the wealthy, the majority of whom split their assets among at least four financial advisers, according to recent research by Cerulli Associates Inc.
