RADNOR, Pa.--(BUSINESS WIRE)--New survey data from Hartford Funds reveals that while consumers currently working with financial advisors are generally satisfied with their relationships, they are seeking more personalized engagement and a more human-centric approach to their investments. Hartford Funds surveyed more than 500 investors who are currently working with a financial advisor in order to gain insights into Americans’ preferences and drivers when it comes to their client-advisor relationships.
“The emotional relationship between advisors and clients has never been more important than it is today. We live in a time when information is at consumers’ fingertips and it is the job of the advisor to quiet the noise,” said John Diehl, Senior Vice President of Strategic Markets at Hartford Funds. “Advisors should not only be expected to deliver on quantitative performance, but also take a human-centric approach to advice by offering holistic financial counsel based on clients’ individual goals and needs.”
Benchmarks Beyond Performance
The data revealed that twice as many investors value relationships with their financial advisors over performance. Only 32 percent of respondents felt that a financial advisor who is focused on delivering superior investment performance is what’s most important.
The overwhelming majority (86 percent) of respondents identified an area where they’d like to see improvement from their advisor. Nearly a quarter (22 percent) identified wanting advisors to take more time on education about the financial planning process and their investments as the top areas needing improvement. More personalized advice was the second most frequently cited area (14 percent), followed by wanting advisors to care more about them as people and not just clients (13 percent).
Igniting the Retirement Conversation
Most respondents’ main driver to begin working with a financial advisor was to plan smartly for retirement (61 percent). However, only half (51 percent) strongly agree that their financial advisor talks with them about what life will be like when they retire. Nearly one in five say their financial advisor does not talk with them at all about what life will be like in retirement.
“Advisors understand that context is key in helping clients set the right goals for retirement,” continued Diehl. “Because retirement is often the trigger for the relationship, it is alarming that more than half of respondents feel that advisors aren’t talking to them about life in retirement. Advisors need to find creative ways to continue the conversation about goals and the motivations for reaching them.”
Differences Across Demographics
Perhaps the most significant group that advisors have an opportunity to engage with is pre-retirees between the ages of 45-64. Nineteen percent of these respondents would like more personalized advice and to be cared about more as a person. Despite approaching retirement age and an increasing need for income, only 47 percent of respondents within that age group strongly agree that their financial advisor talks about what life will be like when they retire.
The data also suggests that the effort to effectively engage women is paying off. More than four out of five women (84 percent) strongly agree that their advisor actively listens to them and nearly the same number (79 percent) strongly agree that their financial advisor provides them with the appropriate guidance for their individual needs. Women were also 15 percent more likely than men (59 percent versus 44 percent) to strongly agree that their financial advisors speak with them about what life will be like in retirement. Perhaps as a result, 74 percent of women strongly agree they have a trusted relationship with their financial advisor both professionally and personally.
More information on how to navigate client discussions, anxiety and other challenges and what the future of financial advice looks like can be found on Hartford Funds’ website.
The survey of more than 500 consumers who currently work with financial advisors was executed over the phone in April 2015.
About Hartford Funds
Founded in 1996, Hartford Funds is a leading provider of mutual funds and 529 college savings plans. Using its human-centric investing approach, Hartford Funds creates strategies and tools designed to address the needs and wants of investors. Leveraging partnerships with MIT AgeLab and leading practice management experts, Hartford Funds delivers insight into the latest demographic trends and investor behavior. Hartford Funds offers a diverse line-up of more than 45 mutual funds, sub-advised by Wellington Management, designed to address the challenges investors face and includes equity, fixed-income, multi-strategy, and alternative investments. The Company has mutual fund assets under management of $75.7 billion as of March 31, 2015 (excluding assets used in certain annuity products). For more information about the fund family, visit www.hartfordfunds.com.
All investments are subject to risks, including possible loss of principal.
Investors should carefully consider the investment objectives, risks, charges, and expenses of Hartford Funds before investing. This and other information can be found in the prospectus and summary prospectus, which can be obtained by calling 888-843-7824 (retail) or 800-279-1541 (institutional). Investors should read them carefully before they invest.
Hartford Funds are underwritten and distributed by Hartford Funds Distributors, LLC. Hartford Funds Distributors, LLC is a subsidiary of The Hartford Financial Services Group Inc.
“The Hartford” is The Hartford Financial Services Group Inc. and its subsidiaries. Wellington Management Company, LLP is a SEC-registered investment adviser and an independent and unaffiliated sub-adviser to Hartford Funds.
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Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in The Hartford’s Quarterly Reports on Form 10-Q, our 2014 Annual Report on Form 10-K and the other filings The Hartford makes with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.
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