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Investor Satisfaction Survey Names Top Firm
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Considering the Dow and S&P both recently hit record highs, it makes sense that investor satisfaction with full service investment firms increased for the second year in a row. Which firm had the highest overall satisfaction rate?
Considering the Dow and S&P both recently hit record highs, it should be unsurprising that investor satisfaction with full service investment firms increased for the second year in a row.
According to the J.D. Power & Associate 2013 U.S. Full Service Investor Satisfaction Survey, the type of relationship investors have with their advisor heavily influences how satisfied they are with the service.
The study measures overall satisfaction in seven areas of importance:
1. Investment advisor
2. Investment performance
3. Account information
4. Account offerings
5. Commissions and fees
6. Website
7. Problem resolution
Only two full service investment firms earned five stars for overall satisfaction, according to the report’s ratings, while four earned just two stars. However, investors reported that overall satisfaction improved by 14 points on a 1,000-points scale from 2012.
“Logically, an improvement in investment performance is going to result in an increase in investor satisfaction,” Craig Martin, director of investment services at J.D. Power & Associates, said in a statement. “However, not all firms achieve the same level of increase in satisfaction from this improvement. The study finds that there are two elements beyond investment performance separating firms with high satisfaction from those with low satisfaction: the person that investors credit for their investment performance and the relationship investors have with their advisor.”
The study found that in addition to updates on portfolio performance, investors appreciated firms that provided other advice and insights, such as tips on new investments. Firms that communicated with investors more, typically had higher satisfaction ratings.
RBC Wealth Management ranked the highest in satisfaction, according to the results of the study.
Go to the next page to see the highest and lowest ranked full service investment firms for overall investor satisfaction.
Best
3. Edward Jones
Score: 808
Overall satisfaction: 4 out of 5
Investment advisor: 4 out of 5
Investment performance: 5 out of 5
Account information: 5 out of 5
Product offerings: 4 out of 5
Fees: 3 out of 5
Website: 4 out of 5
2. Fidelity Investments
Score: 810
Overall satisfaction: 5 out of 5
Investment advisor: 3 out of 5
Investment performance: 5 out of 5
Account information: 5 out of 5
Product offerings: 5 out of 5
Fees: 5 out of 5
Website: 5 out of 5
1. RBC Wealth Management
Score: 820
Overall satisfaction: 5 out of 5
Investment advisor: 5 out of 5
Investment performance: 5 out of 5
Account information: 5 out of 5
Product offerings: 4 out of 5
Fees: 4 out of 5
Website: 4 out of 5
Go to the next page to see the lowest ranked full service investment firms for overall investor satisfaction.
Worst
(alphabetical order)
AXA Advisors, LLC
Overall satisfaction: 2 out of 5
Investment advisor: 2 out of 5
Investment performance: 2 out of 5
Account information: 2 out of 5
Product offerings: 2 out of 5
Fees: 2 out of 5
Website: 2 out of 5
Chase Investment Services
Overall satisfaction: 2 out of 5
Investment advisor: 2 out of 5
Investment performance: 2 out of 5
Account information: 2 out of 5
Product offerings: 2 out of 5
Fees: 2 out of 5
Website: 3 out of 5
Citigroup (CitiCorp)
Overall satisfaction: 2 out of 5
Investment advisor: 2 out of 5
Investment performance: 2 out of 5
Account information: 2 out of 5
Product offerings: 2 out of 5
Fees: 3 out of 5
Website: 2 out of 5
Morgan Stanley Wealth Management
Overall satisfaction: 2 out of 5
Investment advisor: 3 out of 5
Investment performance: 2 out of 5
Account information: 2 out of 5
Product offerings: 2 out of 5
Fees: 2 out of 5
Website: 2 out of 5
