- 66% asserted the S&P 500 was down in 2009 (it actually gained 26.5% that year).
- 48% thought the S&P 500 was down in 2010 (it actually gained 15.1% that year).
- 53% believed that the S&P 500 was down in 2011 (it actually gained 2.1% that year).
Based on these responses, it is no surprise that close to $170 billion has been withdrawn from equity mutual funds over the past three years. Instead, these investors are choosing to park their money in cash equivalent funds and money market funds, which are earning historically low interest rates that are not even keeping up with inflation. Once again, investors are missing out as the S&P 500 is up almost 18% year-to-date as of 9/21/12 per Morningstar. Of course, the traditionally volatile month of October is right around the corner and there are still a few months left in the year in which anything can happen. Nevertheless, clients will continue to miss out on solid equity returns should they remain so risk-averse and conservative.
In many cases, investors may be out-of-touch and slightly oblivious to market conditions because they are not receiving adequate attention and updates from their financial advisors. After working with larger Broker/Dealers and RIAs, Customer Effective has found that the advisors who operate more efficiently are the ones that have better insight into the last time they spoke with a client, prepared a financial plan for the client, or had an actual face to face portfolio review. By having these key dates along with an aggregated snapshot of all investment accounts on the custom wealth management client profile in Microsoft Dynamics CRM as seen below, financial advisors and their client service support teams can collaborate more effectively, be more in tune with the overall state of the client relationship, and be more prepared for future upcoming client meetings.
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If you are a large B/D or growing investment advisory firm looking for a more scalable and flexible CRM platform to enhance the productivity, performance, and level of service provided by your financial advisors, please contact [email protected]. Our custom Wealth Management-focused CRM solution can definitely help you better connect with your investors and attract and retain more top-producers.
Post by: Kevin Wessels, Customer EFfective, Florida, Georgia Microsoft Dynamics CRM