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Canadians are less satisfied with their investment firm, for the first time since 2008

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15 April 2019 13:30

The satisfaction of Canadians toward their firm’s investment fell for the first time since the economic crisis of 2008, according to a survey of the consulting firm J. D. Power. The grade given by the respondents was $ 778 for a total of 1000 points, compared to 785 in 2018.

This follows a year of “turbulent on the stock markets and negative returns,” says the firm. “There is a belief in the industry that difficult market conditions are the time when the financial advisors demonstrate their value to clients, argues Mike Foy, the first director of the information on the heritage at J. D. Power. What we find however is that the advisors do not have the difficult discussions and necessary in order to manage the expectations of the clients and help them to navigate through the volatility and declines in markets. “

Left without explanations

Nearly one investor in three (32 %) believes that their counselor has not taken the time to explain the performance of their portfolio over the past year, reveal the results of the survey.

“Investors who do not receive explanations on the part of their advisor are more than twice as likely to qualify the performance of their portfolio as being “worse than expected” and were much less satisfied with both their performance and that of their consultant “, also points out J. D. Power.

“Although market conditions are out of the control of investment firms and advisors, they have the possibility of monitoring the reaction of their investors, and they must provide this transparency to help their clients stay focused on their long-term goals “, adds Mr. Foy.

Investors to high-value, more dissatisfied

Investors with assets of at least $ 500,000 are the most dissatisfied, suggests J. D. Power. Note that they have paid to their investment firm has dropped 38 points compared to the previous year.

More than a quarter (28 %) indicated that the performance of their portfolio was ” worse than expected “. Of this group, 16 % say they want to reduce their investment over the next 12 months. For investors whose performance has been ” better than expected “, with only 4 % of them will reduce the size of their investment, says the survey.

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