06.28.23

Affluent Clients' Trust in Advisors Unshaken by 2022

by: Jennifer Lea Reed

Wealthy investors' faith in their financial advisors remained unshaken despite last year's headwinds, according to a Cerulli Associates report. The report found that while 44% of affluent respondents had reconsidered their overall portfolio plan in 2022, 61% said they believed financial services firms put the clients’ best interests first. That confidence rose to 75% for bank advisors, 73% for private banks and 72% for independent advisors. Scott Smith, director of Cerulli research, said that the anxiety over a market downturn could cause investors to make reactive portfolio changes that run counter to their financial goals. “To counter these tendencies, providers should encourage their advisors to consistently position market volatility as an exploitable expectation rather than a conquerable enemy,” he said. “No matter how confident and informed a client may be, these circumstances require escalating levels of communication and reassurance.”

Read the full article on Financial Advisor