Intelligent Advisor

Performance Has Staying Power, Even Among Wealthy

Good portfolio management is still the biggest reason clients stick with their financial advisor, even among the wealthiest investors.

In a survey of 3,025 global investors with an average of $2.9 million in assets, 17 percent of wealthy investors globally say performance is the driving force in staying with their current advisor. Among investors in the Americas it's an even bigger motivation, with 24 percent of clients saying it was the most important factor.









But elsewhere, other factors, including service, quality of advice given and client focus, were the top reasons for client retention. European investors value their happiness with the advice provided, while investors in Asia Pacific cited advisors’ ability to offer solutions and services to meet their needs as their top reason for staying.

Moreover, the survey—compiled by SEI, Scorpio Partnership, and NPG Wealth Management—found that performance became less important to investors the more wealth they had. Among global investors with less than $500,000, 21 percent say good portfolio management is important. Only 12 percent of investors with more than $4 million cite that as their reason for sticking with their advisor. In fact, these investors say their advisors’ ability to offer customized services and solutions is the most important aspect of the relationship.

Clients also tend to consolidate their assets under one money manager as they age, the survey found. Younger investors (those under 40) have less than half of their assets with one advisor. By the time they’re 60-years-old, their primary advisor manages 65 percent of the assets.

“Many factors play a role in why high-net-worth investors both choose an advisor and stay with their advisor,” said Kevin Crowe, Head of Solutions, SEI Advisor Network. “No doubt, the most successful advisors realize that the relationship with their clients extends beyond a series of transactions and by adding value in multiple and meaningful ways.”

Please or Register to post comments.

What's Intelligent Advisor?

The quick hits of information you need to make you a smarter wealth manager


Diana Britton

Diana Britton is the Managing Editor of and REP. Magazine, covering asset management and independent broker/dealers from all angles. A native of Los Angeles, she now lives in...

Megan Leonhardt

Megan Leonhardt is senior editor for and REP. magazine, reporting on national brokerage firms and the independent advisor landscape, as well as regulatory...
Blog Archive
Investment Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×