According to Financial Advisor magazine, failure to understand a client’s goals and objectives is one of the top reasons why clients fire advisors. Advisors look to fund issuers to gain insight into investor behavior and decisions in order to better understand their clients. Recently, several firms have integrated and promoted their insights on advisor-facing websites. In April, Franklin Templeton introduced a new Investor Behavior page, which discusses the social, emotional and cognitive factors that affect investor choices. The information is presented in a series of five videos that examine concepts in behavioral finance such as herding, availability bias and home country bias. The concepts are explained using light and topical examples such as the World Cup and Shark Week.
BlackRock goes beyond investment decisions in its Through the Lens of Women Investors page. The page showcases the results of the Investor Pulse Survey of 2,000 women about money, investing and financial goals. The page highlights key findings through colorful charts, animations and sliding carousels. The survey offers insight into women’s behaviors and rationale by focusing on their views on investing, retirement, financial decision-making and long-term priorities. BlackRock also emphasizes the different decisions facing male and female investors, particularly in involving retirement.
Hartford Funds provides the most unique approach to advisor-client relationships through its human-centric investing campaign. Announced in early March of last year, the campaign strives to utilize its research in order to “understand the rational and emotional ways that investors think about money, their investments and their financial advisors.” The campaign stands out from other competitors because of its emphasis on understanding clients’ mindsets, rather than focusing on the bottom line.
Hartford Funds’ distinctive approach stemmed from an ongoing relationship with the MIT AgeLab, which has worked to uncover what investors are thinking and who they trust. Research conducted by Hartford Funds revealed that consumers are seeking more personalized engagement with their financial advisors. In examining the emotional relationship between clients and their advisors, the Hartford Funds/MIT AgeLab partnership effectively focuses on how societal influences, generational differences and life stage trends impact clients.