Thu, 15 April 2021 | investing
With consumers in the Millennial1 generation poised to inherit more than $68 trillion in wealth from their Boomer parents during the next decade, full-service wealth management firms have a vested interest in tailoring their services to the evolving needs of younger investors. According to the J.D. Power 2021 U.S. Full-Service Investor Satisfaction Study,SM released today, the past year has exposed a stark divergence in the investment behavior of younger investors compared with their older counterparts.
“Investors under age 40 are changing much more quickly in terms of their wealth management preferences and priorities—and they look increasingly different from Boomers,” said Mike Foy, senior director of wealth intelligence at J.D. Power. “Not only has the pandemic significantly accelerated their shift to more digital engagement, but emerging issues like ESG [environmental, social and governance] are also a major priority for them that isn’t seen as much yet among Boomers. Wealth management providers are making a mistake if they assume that the emerging affluent investors will simply evolve into Boomers over time. Firms with the ability to recognize and address these changing needs will define success through the great wealth transfer.”
Following are some key findings of the 2021 study:
Study Ranking
Edward Jones ranks highest in overall investor satisfaction with a score of 770 (on a 1,000-point scale). Stifel (760) ranks second, while Fidelity (751), RBC (751) and UBS (751) each rank third in a tie.
The U.S. Full-Service Investor Satisfaction Study, now in its 19th year, is redesigned for 2021. As a result of the study redesign, scores are not comparable to those of previous years. The study measures overall investor satisfaction with full-service investment firms in seven factors (in order of importance): trust; people; products and services; value for fees; ability to manage wealth how and when I want; problem resolution; and digital channels.
The study is based on responses from 4,392 investors who make some or all of their investment decisions with a financial advisor. The study was fielded from December 2020 through February 2021.
Source: J.D. Power