As competition in the wealth management and investment space continues to grow, retaining high-net-worth clients can be challenging, especially as demands change.
But a new report that asked HNWI’s about their relationship with their advisor highlights a clear piece of advice for advisors – there is no typical client and you cannot one size certainly does not fit all.
While there are always new solutions and services that you can add into the potent mix that you can offer your client base, the Dynasty Connect Survey from Dynasty Financial Partners found that beyond financial planning, which is valued by respondents above all else, personalization is essential.
Take tax planning services for example, which 45% of the HNWIs who took part in the research said their advisor offers – but just 28% said they value this service.
Understanding specific needs is considered very important for those seeking an advisor to work with – 59% said so – and satisfaction drops where this is not evident.
Although most of the HNWIs polled were confident in the ability of their advisor to support them during key life events such as marriage, divorce, or a move, they are less confident in their portfolio construction and market events navigation.
Conflict of interests are also a concern, relating to fees received by advisory firms for investment products, with this a bigger concern among younger investors.
However, despite the potential to lose clients from not delivering what they need, attrition is actually low according to the survey, with 52% of respondents having only ever worked with one advisor, just 25% who have voluntarily switched once, and just 17% who have switched twice.
Among those who have switched, investment performance and an advisor’s retirement or firm move is the main reason. But three in ten poll participants who had switched said they simply found a more impressive advisor.
Personality/fit, fees and structure of fees, and lack of contact with their advisor were also cited as key reasons for switching.
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