Investor relations hit hard by crisis

SurveyThe financial crisis of 2008-2009 had a significant negative impact on the trust that investors place in their financial advisers, according to an American study out today.

Of the predominantly high-net-worth investors surveyed, 42% said they now use fewer advisers than three years ago because they were unhappy with the advice that they received and 21% felt that they were able to allocate investments themselves.

The findings are included in the report by the Wharton School of the University of Pennsylvania and State Street Global Advisors, entitled ‘Taking on the Role of Lead Advisor: A Model for Driving Assets, Growth and Retention.’

Intriguingly, the study found that many investors with multiple advisers did not always provide sufficient information about the amount and placement of their assets.

Furthermore, investors who did not have a designated lead adviser (when using more than one) generally lacked an aggregate view of their financial health, with the potential consequence of failing to achieve their financial goals.

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