Explore four opportunities to elevate advisor-client relationships

investmentnews.com:

In the ever-evolving world of financial advisory, personalization has transcended the status of a mere buzzword to become a fundamental aspect of successful client engagement. This is a sentiment echoed by Joe Agostinelli, Senior Director of Market Research at Morningstar – who points out the increasing preference of investors for tailor-made investment strategies that align closely with their unique goals and financial ambitions.

This approach transcends traditional metrics, focusing instead on tailoring advice to individual risk profiles and specific financial situations. The key is not just to meet financial objectives but also to respect the client’s specific financial situations, spirations, and risk tolerance.

Morningstar’s 2023 Voice of the Advisor research program provides a comprehensive view of the financial advisory segment through multiple studies and surveys. The research, which included surveying 400 investors, reveals that personalization in investment strategy primarily revolves around aligning clients’ risk tolerance with their goals and needs.

Interestingly, this preference for personalized advice becomes even more pronounced among investors with higher investable assets, particularly those above $250,000. Agostinelli says, “The data also reveals that non-investors consider personalization a key factor in deciding to start working with an advisor – this is in addition to a need for them to understanding dollar costs in that relationship, establishing trust/rapport, and demonstrating advisors know their stuff by taking an ELI5 approach to complex issues.”

Surprisingly, factors such as values alignment, commitment to diversity and inclusion, and shared cultural background, which may still be important for