Vanguard: Focus on building relationships not picking funds

Trust most important factor in referrals

Victoria McKeever
clock • 2 min read

Building and maintaining trust is most likely to lead to a high rate of client retention, so advisers' focus should be on building relationships not picking funds, argued Vanguard senior investment strategist Don Bennyhoff.

Speaking at a webinar entitled ‘What are clients looking for in a financial adviser?', Bennyhoff said Vanguard research had found trust in an adviser was most likely to guarantee client referrals and retention. Of those with a ‘high level' of trust in their adviser, a mere 2% would be likely to switch advisers, it found. This compared with 70% of those with a low level of trust in their adviser. "Trust is the gatekeeper for client retention," said Bennyhoff. "In the future, it will become increasingly important for advisers to act principally as a relationship manager and less like a ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

AJ Bell cuts fees across multi-asset income range

AJ Bell cuts fees across multi-asset income range

£1.5bn of inflows this year

Beth Brearley
clock 14 November 2024 • 1 min read
Tatton AM launches range of passive funds as AUM surpasses £20bn

Tatton AM launches range of passive funds as AUM surpasses £20bn

Net flows double from last year

Cristian Angeloni
clock 13 November 2024 • 1 min read
Mabel Insights adds DFM partner

Mabel Insights adds DFM partner

Additional Waverton data to be available on comparison site

Jen Frost
clock 12 November 2024 • 2 min read