JD Powers Survey Shows Inestors Wary of Advisor Firms but Like Advisors
07/19/2010 0 comments
Investors have yet to make peace with their financial-services firms.
At least that's what the results of the J.D. Power and Associates 2010 U.S. Full Service Investor Satisfaction Study, released Monday, indicate.
The study measures investor satisfaction on a 1,000-point scale. This year, overall satisfaction rested at 769, a jump from the 2009's number, 731. But still below 2008's rating of 776.
The survey asks consumers to measure whether they feel their firm leans more toward being customer driven or profit driven. On a spectrum of one to seven, one represents that a firm is profit driven, seven being customer driven. In 2010, firms averaged 4.81, meaning consumers felt the firms were more motivated by profits last year than serving them than in the past. In 2009, firms tipped more in customers' favor, receiving a 5.04 score. Perception of investment fees might be part of what's creating customer ire, especially new or hidden fees that may surprise investors.
Advisers have their work cut out for them, with markets keeping up their wild ride and many investors re-evaluating relationships with their financial advisers in the shadow of Bernard Madoff. The survey found that while many investors may view their advisers favorably, they may loathe the firms that employ them.
The J.D. Power survey was conducted in May 2010 and based on responses from 4,460 investors who use an adviser.
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