A recent survey by the Institute for Private Investors (IPI) shows that more than ever, wealthy investors want to know what’s happening with their money.
Investors have become more proactive in their wealth management since the 2008 crisis. Trust in their advisors is not the issue; a greater focus on risk management, transparency, and conflicts of interest has become a greater concern.
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Of the 14 advisors participating in the survey, only 38% said their firms have fewer conflicts of interest and are more transparent about fees than five years ago.
The results are being deemed positive because they show there is more focus on how advisors and their firms are conducting their businesses.
But the survey also shows continued discomfort by investors, especially the wealthy.
Only 28% of wealth investors are confident about their current investment strategies while 23% have major concerns. Just under half are neutral on the topic.
The study also showed that more families are turning over investment management control to internal chief investment officers
and others who are well-known instead of to outsiders.