Being financial advisors, we are always working to improve the financial lives of our clients. Principally, our work revolves around assisting our clients to achieve financial security and fulfill their higher goals in life.
We recently wrote about insights on what consumers think of financial advice and of the advisors who deliver it based on a recent report by ASIC.
However, we also know that getting your input is the only way by which we can understand you better and appreciate exactly what it is you deem important. This is why we are happy to share the salient points and key HPH Solutions learnings from a recently conducted investor feedback survey.
The survey group involved 22,938 clients across the global financial planning industry, 172 of which were from HPH, which was a good sample size for us as it represents roughly 50 percent of our client group. Overall, here’s what the report reveals:
1. Most clients are strong advocates of their financial advisor
In response to the question: “How likely are you to refer your advisor to a friend or colleague? (10 is most likely; 0 is least likely),” 76 percent of HPH respondents belong to the “promoters” category which responded with the values 9 to 10.
However, it is also good to know that almost the same percentage applied to the whole sample group, with 74 percent of the sample group of financial planning clients being classified as promoters.
This implies that most clients are fundamentally satisfied with the service of their financial consultants so they are ready and willing to recommend them to their family, friends and colleagues.
2. Clients value personalized advice, above all
The question “What attribute do you consider most important in your advisor relationship?” led to the following results:
- Experience with clients like me: 49 percent of HPH Solutions chose this attribute whilst 46 percent of clients in the total sample gave the same answer
- Investment returns: 29 percent of HPH Solutions clients chose this attribute whilst 35 percent of clients in the bigger sample selected the same answer
- Fees and expenses: 4 percent of HPH Solutions clients chose this; 5 percent of clients in the total sample chose the same attribute
- Range of services: 15 percent of HPH Solutions clients chose this attribute whilst 12 percent chose it overall in the total sample
- Team size: 2 percent of HPH clients selected this attribute whilst 1 percent of the total sample chose the same
- Advisor of similar age: 1 percent of HPH clients, as well as the total sample selected this attribute
From these results, we can safely say that although investment returns are understandably quite important to our clients (as well as clients of other establishments), you value personalized service the most.
This means you attach great importance to how we tailor our approach to your particular situation and not some formulaic or generalized strategy that may not be relevant to your situation, needs, and goals.
3. Sense of security and peace of mind ranks highest.
The question posed in this part of the survey is: “How do you primarily measure the value received from your advisor?” The results are as follows:
- Sense of security, peace of mind: 48 percent of our clients chose this answer; 36 percent of the total sample chose this as their top answer
- Knowledge of my personal financial situation: 22 percent of our clients chose this answer; 25 percent of the total sample chose this
- Progress towards my goals: 17 percent of HPH Solutions clients selected this answer; 19 percent of the total sample chose the same response
- Investment returns: 6 percent of our clients chose this answer; 13 percent of the total sample chose the same answer
- My investment account balance: 8 percent of HPH Solutions clients selected this answer; 7 percent of the total sample chose the same response
This fact that a sense of financial security and peace of mind are ranked first among all the responses is something to be expected. However, it is also good to confirm this fact – after all, it is our job to make you feel secure, or at least help you achieve a level of financial security, so you gain peace of mind.
Moreover, the above responses show that finances, in the form of investment returns and the account balance, certainly are important. Therefore we provide our clients insights to different horizons for successful investing.
But the personal side of finance takes precedence in that you also consider it of primary importance that your financial advisor know and understand your financial situation and help you move toward your objectives.
You can be confident in the fact that this is an essential consideration that we will always be making for you as your trusted financial planners in Perth.
4. Clients value time to discuss investments with their advisor.
Responses to the question “When you connect with your advisor, what is the percentage of time you want to spend in each of the following areas: (Category Average),” are as follows:
- My investments: 40 percent of our clients chose this answer; 41 percent of clients overall chose the same
- Progress towards my goals: 29 percent of HPH Solutions clients chose this answer; 29 percent of clients in the total sample selected this answer as well
- Current market and economic conditions: 18 percent of our clients chose this answer; 16 percent of clients in the total sample chose the same answer
- Personal matters (nonfinancial): 13 percent of HPH Solutions clients chose this option; 13 percent of clients in the total sample selected this as well
We understand your emphasis regarding investments. The numbers really matter and require careful review.
Every good financial advisor spends the time to ensure their client fully grasps what is happening in their investment portfolio. In financial consultations, transparency is key. Especially when it comes to investments, so these results reflect what we always expect to do for our clients as well.
If you look at the above results, you’ll see that the HPH Solutions situation as far as our clients are concerned, mostly reflects the results of the global sample group.
Perhaps the most significant difference we found in the results compared to the whole sample group, was that HPH clients place a greater emphasis on sense of security and peace of mind, and a smaller relative emphasis on investment returns.
Build a better future with us
As your financial advisors in Perth, we consider it a great honour and privilege that you have chosen us to be your partner in expanding your economic horizons, and your guide in making your most cherished life goals come true.