AssetMark And Advisor Impact Release Annual Report On Client Relationship Trends For 2014

CONCORD, Calif., June 4, 2014 /PRNewswire/ -- AssetMark, Inc., a leading strategic provider of innovative investment and consulting solutions serving independent financial advisors, and Advisor Impact, a thought leader on client engagement and provider of customized client feedback programs for financial professionals, today released The Rules of Engagement: 2014, an in-depth report on advisors' needs and expectations.

The research, developed and conducted by Advisor Impact and sponsored by AssetMark, analyzes trends in client engagement, the standard for measuring the quality of the relationship between advisors and their clients. The Rules of Engagement: 2014 focuses on how advisors can form deeper relationships and become more engaged with clients.

Engagement may not be as good as advisors think. Only 25% of clients are Engaged, according to the study, down 2.7% from 2013. Thirty-six percent of clients are identified as Content, 18% as Disgruntled, and 21% as Complacent.

Frequency of contact, value of review meetings, and managing expectations are among the activities and attributes that drive engagement.

"This year's findings reinforce the need for advisors to establish and maintain strong client relationships," said Matt Matrisian, SVP and Director of Practice Management for AssetMark, Inc. "Advisors who provide clients with a sense of control and clarity over their financial futures will enjoy stronger bonds with them. When clients recognize that the value of the advisory relationship extends beyond investment returns, they are more likely to trust their advisors with more of their assets."

Additional findings that relate to drivers of engagement include:

• Only 27% of clients are "very clear" on what their lives/lifestyles will be like during retirement. Fifty-eight percent of clients are "reasonably clear" on what their lives/lifestyles will be like during retirement.
• Eighty-five percent of Engaged clients say their advisor has explained the level of service they can expect, compared to 59% of Disgruntled clients.
• Engaged clients are more likely to have a written financial plan (64% vs. 42% for Content and 34% for Complacent) and to say their advisor works with them to manage wealth across generations.

"The drivers of client engagement have been relatively consistent since 2008, when the study was first launched," said Julie Littlechild, President of Advisor Impact. "However, advisors must not only know how to identify these drivers, but also how to find ways to implement them in their businesses in very tangible ways. Consistent execution is a rare skill."

"Advisors can strengthen client relationships by adopting a holistic approach to client engagement, creating an environment of meaningful discussions and raising client awareness," said Mr. Matrisian. "We believe that client engagement is the most critical metric for advisors and for the industry. It reflects the client experience and the advisor's growth potential, as 'engaged' clients are among the most satisfied and loyal, and the most likely to drive referrals to the advisor."

The report indicates that there is significant opportunity for advisors to increase client referrals among engaged clients—those who are not only more loyal, but value advice and are less fee sensitive.

Based on Advisor Impact's Economics of Loyalty research, the report draws on input from more than 1,200 respondents across the country. The 2014 study is the fourth study conducted of its kind by Advisor Impact in the U.S. and mirrors similar research in Canada and the United Kingdom. Each year, in addition to measuring advisor performance against a baseline set of questions regarding the client experience, the study goes deeper on emerging issues for advisors.

The Rules of Engagement: 2014, a detailed 49-page report, is available at www.assetmark.com. In the near future, AssetMark and Advisor Impact will publish papers highlighting the tactics that advisors can execute to drive deeper engagement and growth.

About AssetMark, Inc.
AssetMark, Inc. is an independent strategic provider of innovative investment and consulting solutions serving financial advisors. AssetMark provides investment, relationship and practice management solutions that advisors utilize in helping clients achieve their investment objectives and life goals. The firm has approximately $22 billion in assets on its platform and a history of innovation spanning over 20 years. AssetMark works in collaboration with independent advisors who make a difference in the lives of their clients. For more information, visit www.assetmark.com.

About Advisor Impact
Working across North America and the United Kingdom, Advisor Impact takes a data-driven approach to helping financial services professionals drive client engagement and growth through its industry-leading programs, research and tools. In addition to structuring and managing customized client feedback programs at the enterprise level, Advisor Impact works with individual advisors to gather and use feedback from clients. The firm also conducts ongoing research among advisors and investors. For more information, visit www.advisorimpact.com.

MEDIA CONTACT:
Dana Taormina
Jennifer Connelly Public Relations 
(973) 850-7305
[email protected]

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SOURCE AssetMark, Inc.