Clients attribute good portfolio performance to advice
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Clients are attributing recent good performance in their portfolios to the advice they have received rather than the recovery in markets alone, according to research from Lifeplan.
Lifeplan Funds Management's Financial Advice Satisfaction Index found the perception of portfolio performance due to financial advice increased by 9 per cent over the last six months.
"This indicates that advisers have done a good job in getting clients to stick with their investment strategy and not panic," Lifeplan head Matt Walsh said.
However, the index showed that perceptions of wealth accumulators aged between 30 and 44 has declined.
Walsh said wealth accumulators might be more willing to blame their advisers for poor performance due to a lack of long-term relationship with their adviser.
Despite this, clients aged under-30 are not as critical of performance as wealth accumulators.
The research undertaken by the University of Adelaide's International Centre for Financial Services also looked at advisers' technical abilities, trustworthiness and reliability.
The index indicated that younger groups are more difficult to satisfy in the areas of technical ability and trust than older clients.
According to the index, investors aged over 45 were more satisfied with both the technical ability and reliability of their advisers in the last six months after a decline over the previous two quarters.
However, "worryingly, in the area of trust and reliability, there has been a continued decline amongst younger clients since April 2008", Walsh said.
"The older people get, the more likely they are to believe in the reliability and technical ability of their adviser, although performance still lags," he said.
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