What do clients value from their financial adviser? Many articles have covered this and usually reach the same conclusion that ‘beauty is in the eye of the beholder’. Value is assessed by the client, is subjective and based on a variety of expectations and perhaps influenced by how value was positioned with them at the outset.
However, a new survey from Cerulli Associates perhaps offers a different insight. They asked clients what the key factors were when selecting a financial adviser. The top three responses were:
The first two points are probably no surprise and make perfect sense. Clients want clarity and honesty in their interactions and understanding needs, goals and risk tolerance is at the heart of any financial planning relationship. Last year gave us the perfect example of all this working in practice. Hypothetical questions about risk tolerance and capacity for loss for many became a reality while understanding needs and goals, ensuring that financial plans actually stayed on track, were viewed as critical.
However, let’s explore the third factor in more detail. Last year was like no other in terms of volatility. After over 10 years of a bull market, many clients experienced the pain of significant losses in their portfolio. This came at a time when real financial stress was being felt in other areas of their lives such as job security and the impact on their regular income. Mortgage holidays, disinvesting from pension pots or ceasing contributions and other strategies were deployed.
Whilst market recovery has helped some clients’ financial position, it has also shone a light on the requirement for financial advisers to closely monitor clients’ investment portfolios and stay in touch. That requires two activities: advisers maintaining client contact and investment managers delivering appropriate information and support. This needs to be relevant, delivered in ‘client friendly language’ and supported by people who are available to respond to any enquiries.
However, the research dug deeper on this point and asked about expertise in managing portfolios. Only 29% of clients felt that their adviser had the highest level of expertise to run their portfolio and identified that ‘a team approach’ actively benefits them.
So what is the key takeaway from Cerulli’s research? Perhaps it reinforces the need for financial advisers to consider outsourcing their clients’ portfolio to an investment manager. One that offers multi-asset expertise and a team-based approach. By offering a range of solutions, investment managers can support advisers to deliver the outcomes their clients are seeking.
We are delighted that the Schroder Investment Solutions Model Portfolios are now available on Embark. To read our latest insights, click here or visit our website to find out how Schroders can help you
 ThinkAdvisor, 8 April 2021 - https://www.thinkadvisor.com/2021/04/08/top-3-qualities-clients-want-in-their-advisor-cerulli/
About the author
Gillian Hepburn, UK Intermediary Solutions Director, Schroders
Gillian has over 30 years' experience in financial services. Prior to joining Schroders, she had an extensive career at Standard Life followed by consultancy positions with a range of platform providers, asset managers and financial advisers. She also founded DISCUS, a business which provided research, insight and educational content for financial advisers about the outsourced investment market and spent time as Head of Strategic Partnerships at the Embark Group. Gillian is responsible for outsourced investment solutions for the UK Intermediary market including model portfolios on platforms and multi-asset funds.
Marketing material for professional clients only.
The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. This information is a marketing communication. Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.
The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. Insofar as liability under relevant laws cannot be excluded, no Schroders entity accepts any liability for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise).
Issued in June 2021 by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority. UK002784.
The information, materials or opinions contained on this website are for general information purposes only and are not intended to constitute legal or other professional advice and should not be relied on or treated as a substitute for specific advice of any kind.
We make no warranties, representations or undertakings about any of the content of this website; including without limitation any representations as to the quality, accuracy, completeness or fitness of any particular purpose of such content, or in relation to any content of articles provided by third parties and displayed on this website or any website referred to or accessed by hyperlinks through this website.
Although we make reasonable efforts to update the information on this site, we make no representations, warranties or guarantees whether express or implied that the content on our site is accurate complete or up to date.
Our emails are designed to be topical and engaging, however if you don’t like what we send, you can unsubscribe at any time. We promise never to pass your details on to a third party.