The vast majority of high net worth investors look to investment advisors for advice, and many would like more guidance when it comes to selecting investment products, a recent survey reveals.

The survey of 500 Canadians with investible assets of at least $500,000 — not including their homes or employer-sponsored pensions – was conducted in March by The Gandalf Group on behalf of BlackRock, Inc.’s iShares exchange traded fund business.

Of the respondents, 67% said they turn to advisors for at least some advice or decision-making, including help with managing risk and selecting investment products. Another 11% said they retain advisors or brokers to effect transactions.

Two-thirds of the high net worth investors said they are very confident when it comes to decisions around investing for retirement, while only 53% were as confident picking between stocks and funds. This indicates that investment products are a key area where these clients need guidance from their advisor.

“Investors look to their advisor to serve as the level-headed counsellor who provides information on investing trends and unique solutions,” said Heather Pelant, managing director, head of iShares at BlackRock Asset Management Canada Ltd. “Advisors have the opportunity to engage in these discussions to maximize client satisfaction.”

More than 80% of respondents said they felt it was important that advisors or financial planners give consideration to their clients’ financial well-being and put their interests first.

Conflict of interest was a key concern for all respondents, with 63% indicating that they believe advisors had a conflict of interest depending on what type of firm they worked for.

“The better an advisor can convince his clients that he has their best interests at heart, the more likely he is able to demonstrate value,” Pelant said.

IE