Is client relationship more important than performance?

An adviser’s relationship with their client trumps investment performance, according to an industry panel, and too many advisers are hanging their value proposition on financial results.

Speaking at the ifa Future Forum in Sydney, the panel discussed the importance of managing clients and their expectations during volatile markets.

Philip Pilgrim, general manager for partnerships and distribution at Implemented Portfolios, said it was important to keep communication consistent and regular, rather than waiting until a client was asking questions and panicking about decisions or news.

“A client doesn’t come to an adviser and ask for good returns and if they do, they probably don’t know what they want. The relationship is more important to them. Investing is essential but you will get the results the market delivers over the long term.

VIEW ALL

View all

“The most successful advisers are those that put the relationship first and understand their clients and draw out their values. Market performance is important but it doesn’t affect the client, what matters is how it affects their goals and dreams. Too many are hanging their value proposition on investment performance.”

Mark Weingarth, state manager for New South Wales and ACT at Charter Hall, said the firm had been keeping in daily contact with advisers and clients as the firm’s specialism in real estate was significantly impacted by rising inflation and interest rates.

“Keep in regular communication with the clients, keep updating them. Reassure them that we have been through times like this before, it’s a relationship business.”