Advisor satisfaction high even as market fears grow, survey says

Investors are preparing for a dimmer future thanks to Presidential election concerns, inflation and interest rate unease, according to a new study. That’s the bad news.

The good news, at least for financial advisors, is their satisfaction with their wealth management providers remains high.

Janus Henderson Investors today released the findings of its "2024 investor survey titled “Insights for a Brighter Future" which revealed that investors are substantially reducing portfolio risk due to economic and political uncertainty. The report most notably showed 42 percent of investors surveyed are very satisfied with their current financial situation, down from 48 percent a year ago, and 67 percent believe the cost of living is increasing faster than their income. 

The Presidential election is clearly weighing on investor minds with 78 percent of survey respondents voicing concerns about its impact on their financial situation over the year. In fact, election worries outranked persistent inflation (70 percent), high interest rates (57 percent), poor stock market performance (57 percent), or a potential recession (55 percent).

The report showed that investors are acting on their concerns with 33 percent of survey respondents shifting assets from equities to cash or fixed income investments in the past year.

“For the second year in a row, the election ranked as the top financial concern. Notably, 62 percent of investors plan to take less investment risk until the election is decided.  In the next few months, advisors will play a critical role in helping clients tune out the noise and maintain a long-term perspective regarding their investments,” said Matt Sommer, head of specialist consulting group at Janus Henderson Investors. 

FINANCIAL ADVISORS TO THE RESCUE

The study also showed nearly three-in-four investors believe that AI greatly increases the risk of financial exploitation, and 56 percent are very or somewhat concerned that they or a loved one could fall victim to financial exploitation. 

The good news on the fraud front is that 45 percent of investors who use a financial advisor report their advisor has already provided them with resources to help avoid financial fraud, the survey said.

Furthermore, among investors working with a financial advisor, a healthy 67 percent are very satisfied and 31 percent are somewhat satisfied with their relationship.

“Those who are most satisfied with their advisor are more likely to say their advisor cares about them as a person and provides peace of mind.  These results suggest that there is much more to advisor-client relationship quality than returns and fees,” added Sommer.