Crunch time for wealth managers
Wealth managers need to work out how to communicate better with their clients or face mass defections, according to research from Dow Jones.
The Wealth Management After The Crunch research found 42% of high net worth individuals are likely to review or switch their wealth manager in the wake of the fi nancial crisis.
While most are disappointed with investment returns they are also highly critical of their advisers’ performance in other areas, most notably their speed of response to the crisis and levels of communication and contact.
However, most wealth managers failed to recognise their defi ciencies in these and most other areas. The research found wealth management executive thought they performed well in virtually all aspects of their business during the financial crisis.On the majority of issues addressed in the research, the views of clients and their advisers diverged significantly.
For instance, while three quarters of wealth managers thought their clients regarded them as a trusted adviser, only a third of clients agreed.
The research, conducted by Wealth Bulletin in association with independent consultant Bruce Weatherill, gathered views from more than 150 wealth management executives, nearly 100 high net worth individuals and 65 industry intermediaries globally.
Weatherill says: “Wealth managers always claimed the client was king and now they truly are. It is up to wealth managers to deliver what they promise or lose clients to their competitors.”
The majority of wealth management executives said they regarded communicating their difference to clients as one of their biggest challenges.
*To order the Wealth Management After The Crunch research report, go to www.wealthbulletin.com/wealth managementafterthecrunch09 or email richard.lennon@dowjones.com
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