Financial Study Press Release

Affluent Investors Increasing, Study Shows

Missed Opportunity for Financial Service Providers

More affluent households are now using investment advisors, and satisfaction with those advisors has also risen significantly among three affluent segments, according to a newly released study from XYZ Corp. titled “Trends & Opportunities in the Affluent Market.”

With the number of affluent investors rising again this year, the study’s findings indicate opportunities for investment providers and advisors.

While more than one fourth of the highest net worth investors surveyed are owners of privately held businesses and professional practices, for personal financial services, more than half of these business owners go somewhere other than the institution that serves their business. This represents a significant missed opportunity for investment service providers, the study asserts.

The report shows since 2007 a 56% increase in the number of affluent households and a 16 percent increase this year. Households with more than $500,000 in net worth (not including their primary residence) rose to 16.4 million in 2007.

Among these affluent households, satisfaction with their primary investment service provider rose significantly during this period. The most dramatic increase occurred among the largest group, those dubbed the “Mass Affluent” in the report. This segment represents households with $500,000 to $1 million in net worth, not including their primary residence. 80% of these households now rate their primary investment service provider as excellent or very good, up from only half in 2003. Similar results were found for investors with net worths of $1 million to $5 million, and those valued over $5 million.

Performance is the most important selection criteria among all three segments. Reputation is the attribute for which providers received the highest rating. Providers’ fees earned the lowest rating.

The full report is available for purchase from XYZ Corp. 800-###-####

Article #2 for same client

More Affluent Investors Using Professional Investment Advisors,

Performance is Highest Criteria

More high-net worth individuals are turning to long-term financial advisors, according to a new report on Affluent Wealth, released by XYZ Corp titled “Trends & Opportunities in the Affluent Market – Investment Advisors.”

While all segments of high-net-worth individuals are turning to professional financial advice, this is particularly true for the biggest segment, households with $500,000 – $1 million of net worth available for investment. The report, which covered covers investors with $500,000 to over $5 million in investable net worth, showed that over two-thirds of these investors in the $500k to $1m range now use a professional advisor, up from barely half in 2003.

One perceived stumbling block keeps many affluent investors from seeking professional advice — the cost and perceived trustworthiness of advisors. Investors who can most afford financial advice, those with assets over $5 million available for investment, often don’t use advisors because they are confident they can manage their own portfolios.

Key findings:
  • The vast majority of investors in all segments tend to prefer one advisor.
  • Satisfaction and tenure with primary advisors are high and tend to be rising.
  • Performance of investments is the most important selection criteria for all investors in this segment.

When investors change advisors, the reason tends to vary depending on their net worth. Investors with assets to invest greater than $1 million are more likely to switch to improve performance. Those in the $500,000 to $1 million range usually change due to dissatisfaction, better value, or a need for a greater range of products.

Brokers and CFPs  (Certified Financial Planners) are the advisors most commonly designated as “primary.” The vast majority of those used by study participants work for financial institutions. Approximately one third are independent advisors, the report showed.

The full report is available for purchase from XYZ Corp. 800-###-####