Nearly half of financial advisers say investment performance isn’t the top factor for client satisfaction, according to a recent report.
- The 2024 Meaning of Value report from Royal London highlights the nuanced role of investment performance in client satisfaction.
- 29% of advisers acknowledge that investment performance significantly affects clients’ perception of value.
- 17% of advisers view investment performance as having a minor impact on client satisfaction.
- The general consensus suggests that while important, investment returns aren’t the sole indicator of valuable advice.
The Royal London’s 2024 Meaning of Value report has brought to light the varying perceptions of investment performance within the financial advisory sector. A substantial number of advisers, approximately 47%, claim that investment results, whilst relevant, are not the paramount factor in ensuring client satisfaction. This perspective shifts the focus of financial advice beyond mere numerical outcomes enhancing client relationships.
Advisers seem to agree that while investment performance possesses some degree of impact on how clients perceive the value of advice, it is far from being the most vital element. Specific data from the report reveals that 29% of financial advisors believe investment outcomes play a crucial role in shaping client satisfaction. At the same time, 17% of participants argue that the impact is minimal. This perspective introduces a broader understanding of what clients value when seeking financial advice.
The views in the report suggest a complex paradigm in the delivery of financial advice, where tangible returns intertwine with intangible benefits such as advisory support, personalised strategies, and trust-building. An adviser candidly remarked that investment performance, albeit significant, should not overshadow other attributes that define the value of advice. This sentiment echoes throughout the profession, indicating a nuanced appreciation for the diverse elements that foster strong adviser-client bonds.
Investment outcomes are essential but are part of a broader spectrum of advisory values.
