Please direct all media inquiries to J.D. Power and Associates Corporate Communications Department:
J.D. Power and Associates
Corporate Communications
2625 Townsgate Road
Westlake Village, CA 91361
Toll Free: (800) 274-5372
Phone: (805) 418-8000
Fax: (805) 418-8900
John Tews
Director, Media Relations
Detroit, MI
(248) 267-6800
Aimee Canlas
Manager, Media Relations
Westlake Village, CA
(805) 418-8917
Syvetril Perryman
Specialist, Media Relations
Westlake Village, CA
(805) 418-8103
Angela Bianchi
Media Relations Associate
Detroit, MI
(248) 312-4729
|
|
|
|
|
Email this press release to a friend or collegue
|
J.D. Power and Associates Reports: Economic Struggles Lead to Heightened Importance of Investment Performance
Among Investors
Raymond James Ranks Highest in Full Service Investor Satisfaction
WESTLAKE VILLAGE, Calif.: 30 July 2008 — While the relationship between investors and financial advisors and brokers remains a key factor in investor satisfaction, changes in the economy have investors looking more closely at investment performance—now the most crucial driver of investor satisfaction—according to the J.D. Power and Associates 2008 Full Service Investor Satisfaction StudySM released today.
Now in its sixth year, the study measures overall investor satisfaction with full service investment firms based on six factors (in order of importance): investment performance; financial advisor/broker; commissions and fees; account setup/account offerings; convenience; and account statements. The study also measures investor satisfaction within three investor portfolio types: affluent investors (those who have $1 million or more in investable assets); mass affluent investors (between $100,000 and $999,999 in investable assets); and mass market investors (less than $100,000 in investable assets).
Raymond James ranks highest in investor satisfaction with a score of 831 on a 1,000-point scale, receiving high ratings from investors in all six factors and performing particularly well in proactively contacting investors. Edward Jones follows in the rankings with a score of 806 and UBS Financial Services ranks third overall with 798.
Investment performance surpasses financial advisor/broker as the most important factor in satisfaction in 2008, accounting for 24 percent of overall satisfaction, compared with 19 percent in 2007. Financial advisor/broker accounts for 22 percent of overall satisfaction—down from 24 percent in 2007.
“Current economic conditions, as reflected in declines in stock market indices, have heightened investor awareness of portfolio performance,” said David Lo, director of investment services at J.D. Power and Associates. “Regardless of market conditions, advisors who succeed at managing the expectations of their investors can help to mitigate some of the negative effects. For instance, keeping investors informed by conducting regular portfolio reviews and including portfolio performance information on account statements can have a considerable impact on satisfaction.”
A key to managing the relationship is assigning investors to a dedicated financial advisor or team. Among the 12 percent of investors who report they do not have a financial advisor or team assigned to them, overall satisfaction is substantially lower compared with investors in other types of investment relationships.
Additionally, advisors can improve satisfaction by maintaining periodic proactive contact with investors. Mass affluent and mass market investors understand that varying levels of investable assets call for differences in the frequency of contact. The study finds that to achieve similar levels of high satisfaction among the three investor segments, investment firms need to proactively contact affluent investors an average of 4.2 times per year, mass affluent 2.8 times, and mass market 1.7 times.
“Our advice to investors is that while portfolio performance is of primary importance, it is only one of several dimensions that drive investor satisfaction,” said Lo. “When shopping for an investment advisor, discussing the following key issues can help determine a good fit: whether the investor will be assigned to a specific advisor or team; the frequency of communication about investment performance and the investor’s changing needs; how the advisor measures investment performance; what the investor’s expectations are; the ease of use of account statements; fees; and other types of products and services available from the investment firm.”
The 2008 Full Service Investor Satisfaction Study is based on responses from 4,528 investors who primarily invest with one of the 19 firms included in the study. The study was fielded from April to May 2008. For more information, view full service investor ratings or read an article on JDPower.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on boat ratings, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com/.
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate
# # #
|
|
|
|
2008 Full Service Investor Satisfaction Study The 2008 Full Service Investor Satisfaction Study measures overall investor satisfaction with full service investment firms based on six factors (in order of importance): investment performance; financial advisor/broker; commissions and fees; account setup/account offerings; convenience; and account statements. The study also measures investor satisfaction within three investor portfolio types: affluent investors (those who have $1 million or more in investable assets); mass affluent investors (between $100,000 and $999,999 in investable assets); and mass market investors (less than $100,000 in investable assets).  Enlarge Video Player
|
|
|
|