Ultra High Net Worth investors are more loyal to their investment advisors than their Millionaire counterparts, according to a recent wealth level study conducted by Spectrem of households with a net worth between $5 million and $24.9 million (not including primary residence).
Six-in-ten UHNW investors would follow their investment advisor if he or she left their company for another firm, compared with 53 percent of Millionaire investors who likewise said they would follow their advisor. In both cases, these affluent respondents said that their relationship with their investment advisor was more important to them than their relationship with the firm for which the investment advisor worked.
Age does not affect the number of UHNW investors following their advisor from one firm to another. Investors between the ages of 45 and 54 are less likely to follow their advisor, but only by a few percentage points (56 percent to 60 percent of all UHNW investors). Seventy-nine percent of Advisor-Dependent UHNW investors would stick with their advisor in the case of the advisor relocating from one firm to another, and 71 percent of Advisor-Assisted investors would want to stay with the same advisor.
Managers are less loyal than other business types, as only 46 percent of UHNW managers would stick with the advisor in the case of a move.
These wealthier investors are likelier to have had longer-lasting relationships with their investment advisor than Millionaires. Four-in-ten of investors surveyed from both wealth levels say they have worked with their primary investment advisor for between three and up to 10 years, but Ultra High Net Worth investors, who tend to be older, are more likely to have worked with the same investment advisor for 15 years or more (25 percent vs. 20 percent).
Of Ultra High Net Worth investors who would choose to remain with the firm rather than follow their investment advisor, a majority (57 percent) said that the safety and brand name of the company was more important to them than their relationship with an advisor.