What do Canadian investors want from their advisors?

Communication and personalization are key, according to study

What do Canadian investors want from their advisors?

A study of Canadian investors by wealth management platform CapIntel has found that one quarter of Canadians are dissatisfied with their advisors. That does mean that 75 per cent of clients are currently satisfied, but the survey has identified a few areas that investors are looking for their advisors to improve upon and bring those satisfaction numbers up.

The most common request among investors was for more personalized advice. 28 per cent of respondents called for a more bespoke level of service. At a close second, greater fee transparency was the request of 27 per cent of respondents. 25 per cent requested more financial education on investing strategies and decisions.

“It's never been more clear how important the client experience is for advisors. Canadian investors crave personalized advice from someone who understands their needs," said James Rockwood, Founder & CEO of CapIntel. "As advisors look to impress clients in an evolving digital environment, they need to implement technology, like CapIntel’s intuitive sales enablement platform, to help streamline their processes and deliver investment advice that reflects a deep understanding of their client’s unique financial objectives."

The survey also asked Canadians what keeps them with their current advisors. 65 per cent of respondents said that they’re staying because their advisor “understands my situation/preferences well.” 59 per cent said they’re staying because of a trusted relationship built over time.

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Investment performance was only cited as a reason by around 30 per cent of respondents. Competitive fees were cited by just over 20 per cent and the use of the latest technology was cited by less than 10 per cent of respondents.

The single most popular communication format among respondents was face-to-face, which 41 per cent prefer. 28 per cent said they prefer email, 18 per cent want phone calls, only 10 per cent said they want video calls, and 3 per cent said they want text messages. Remote communication on aggregate was the majority, but was clearly quite divided between media.

Most respondents don’t want overly frequent check-ins from their advisors. 33 per cent said they expect their advisor to check in twice a year, while 32 per cent said they prefer a quarterly check in about their investment strategy.

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Regionally, the prairie provinces of Saskatchewan and Manitoba had the highest combined satisfaction rate at 81 per cent. Alberta and B.C. were second and third with 80 and 74 per cent satisfaction rates respectively. Satisfaction was lowest in Quebec (69 per cent) and the Maritimes (59 per cent).