LONDON--(BUSINESS WIRE)--A new survey from Dimensional Fund Advisors finds investors place a high value on the sense of security they receive from their financial adviser relationship. In one of the largest studies of its kind, the firm surveyed almost 19,000 investors globally to help the advisers who work with Dimensional better understand what is important to their clients. The results reveal that investors are not solely focused on investment returns or statement balances, with peace of mind and working with an adviser who understands their personal situation ranking higher.
Peace of Mind and the Value of Advice
When asked how they
primarily measure the value received from their adviser, the majority of
investors said their sense of security is most important to them:
- Sense of security/peace of mind (35%)
- Knowledge of my personal financial situation (23%)
- Progress toward my goals (20%)
- Investment returns (14%)
“Peace of mind may be attributed to many aspects of an adviser relationship, and in our view it is an outcome of advisers helping investors feel prepared by setting the right expectations,” said Dave Butler, Dimensional Co-CEO and Head of Global Financial Advisor Services. “We believe the advisers who work with Dimensional create a different experience for their clients. Almost all of the investors surveyed say they would recommend their adviser to others. Clearly, clients of advisers who work with Dimensional feel strongly about their relationships.”
David Booth, Dimensional’s Founder and Executive Chairman added, “In our view, peace of mind is what success is all about. Achieving returns in a way that enables people to relax just a little bit more is very important to us and also to investors.”
Client Experience and Investors’ Relationships with Financial Advisers
When
asked what attributes they consider most important in their adviser
relationships, the experience investors have with their adviser is key.
More than half of respondents say client service experience and their
adviser’s experience with similar clients are paramount. And
approximately one-third of investors said returns are most important:
- Investment returns (32%)
- Client service experience (31%)
- Experience working with clients “like me” (26%)
- Range of services (6%)
“Returns matter, but having a plan and remaining disciplined are just as important for long-term investment success,” Butler said. “When investors work with an adviser who has a holistic understanding of their personal situation and can help them stay focused on their long-term goals, we believe they are better positioned to benefit from what the capital markets have to offer.”
The survey also finds that investors of varying demographics are aligned globally in their responses. What matters to investors in the US also matters to investors in Canada, Europe, Australia and New Zealand.
About the Survey
Dimensional launched the Investor Feedback
Survey with US investors in 2016 and expanded the survey globally in
2017. Today, the survey is one of the largest of its kind in the
industry. During February and March of this year, almost 19,000
investors who are clients of financial advisers who work with
Dimensional completed the survey in the US, Canada, Europe, and
Australia and New Zealand. Learn more at eu.dimensional.com/2017-investor-survey-insights.
About Dimensional
Dimensional Fund Advisors is a leading
global investment firm that has been translating academic research into
practical investment solutions since 1981. Guided by a strong belief in
markets, we help investors pursue higher expected returns through
advanced portfolio design and careful implementation. With clients
around the world, Dimensional has 12 offices in eight countries and
global assets under management of $518 billion (USD) as at 30 June 2017.
Learn more at eu.dimensional.com.
This press release has been issued by Dimensional Fund Advisors Ltd. (DFAL), registered address 20 Triton Street, Regent's Place, London, NW1 3BF, Company Number 02569601, which is authorised and regulated by the Financial Conduct Authority (FCA) - Firm Reference No. 150100.
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