Personal Investor: Satisfaction for advisors wanes, survey shows
They try, and they try, and they try, but Canadians are getting no satisfaction from their full-service investment firms, according to a new study from J.D. Power.
It’s the first time since the 2008 financial crisis that customer satisfaction levels have dropped. The study points to volatile markets and poor returns for a decline to 778 from 785 in 2018 (based in a 1,000-point scale).
Here are the key findings from the study:
- 32 per cent of investors said their advisor did not take the time to explain their portfolio performance during the past year. Investors not receiving an advisor explanation are almost twice as likely as those who receive an explanation to indicate their financial performance was “worse than expected” and were significantly less satisfied with both that performance and their advisor.
- Older investors are much more concerned about their financial wellness, with 16 per cent of pre-boomers and boomers indicating they are “worse off” financially than they were a year ago, up from nine per cent in 2018.
- Fee understanding is still elusive. Despite 48 per cent of investors indicating they have noticed changes in the information provided by their firm due to CRM2 – reporting and disclosure rules implemented in 2017 – the percentage of those who say they have “complete” understanding of fees remains stubbornly low at just 31 per cent, down slightly from 32 per cent last year.
Here is how the individual investment firms ranked:
1. Edward Jones
3. BMO Nesbitt Burns
4. CIBC Wood Gundy
5. Raymond James
7. National Bank
8. RBC Dominion Securities
9. TD PIA
10. Scotia McLeod
12.IG Wealth Management
14.Sun Life Financial
15. iA (HollisWealth)