Communication Gap: Investor, Advisor Expectations Way Out of Sync
July 7, 2020 by Alex Padalka
Financial professionals’ expectations about what their clients need are significantly different from those of investors. And if they want to attract new clients and keep those they have, pros will have to communicate better, according to a recent report.
For starters, individual investors expect 11.7% long-term returns above inflation, Natixis found. Financial pros, meanwhile, expect just 5.3%, which represents an “expectation gap” of 121%, according to Natixis’s survey of 2,700 financial professionals in 16 countries. Three hundred of those respondents were in the U.S.
In addition, the main concern for financial professionals when it comes to their clients’ money is exposing assets to market volatility, cited by 25% as a major risk, Natixis says. But only 18% of investors cite exposure to volatility as a risk concern, according to the survey.