Premier Wealth Management based in Birmingham, UK

C is for a customised client experience

The third article released as part of the Russell Investments series, “Value of an adviser formula”, defines the C in the formula as the customised client experience that financial advisers now provide. If you would like to read the previous articles complementing these series click on the A and B values in the formula below.

A+B+C+P

By focusing on the C value of the formula, we are acknowledging the uniqueness of each investor. However, we also want to acknowledge the expanding role of advisers in providing holistic wealth management for entire families.

Looking back at the figure of the adviser, it was a role designed to select investments for clients acting as a robo-adviser does. Today, the investment choice is only a fraction of the full range of services a financial adviser provides, a role still considered necessary due to the implication of asset allocation, security selection and portfolio construction. These actions remain the building blocks of any successful investment strategy. But here’s the thing, investments are only one component of a comprehensive financial strategy.

Wealth managers do so much more these days. Recent research has shown that in the past three years, there has been a 39% increase in advisers providing comprehensive planning services1 in the U.S., a trend that is more than likely to be replicated in the UK and Europe.

 Data source: www.envestnet.com

We each have our own priorities, goals and preferences all of which are underpinned by our own circumstances. As our lives progress, so does the complexity of our financial decisions as the impact appears more immediate.

Temple Row sees that the value of an adviser is proved in the way they help their clients determine their priorities and then creating a customised investment plan to meet those priorities. As and when those priorities change – as many did during the pandemic – the adviser can ask the right questions and help the investor adapt the plan to their new circumstances.

The conversations between customers and financial advisers, bring us to the vital role that communication plays. Recent research2 has shown that investors prefer to work with an adviser who has a deep understanding of their individual situation and what they are trying to achieve. They also say that personalised and frequent contact would give them more confidence in their financial plan. The same study also found that investors are far more likely to refer an adviser to family and friends if they felt the adviser provided regular and valuable information. It is a true indicator that clear and honest communication is very important to maintain and strengthen client relationships.

*** Nothing in this article constitutes advice and all investments carry some level of risk. ***

 1 Source: Envestnet. https://www.envestnet.com/press/envestnet-moneyguides-latest-advisory-survey-finds-financial-planning-services-fees-rise

2 Survey “How can advisers better communicate with their clients”, December 2019 by YCharts. Total sample size represented 650 individuals across the U.S.
https://go.ycharts.com/hubfs/YCharts_Client_Communications_Survey.pdf

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