Press Release |
Email this press release to a friend or collegue
|
Press Releases | Fact Sheets | Media Contacts | Facts and Figures
 |
Contact:
John Tews
(248) 312-4119 |
Syvetril Perryman
(805) 418-8103 |
|
| |
J.D. Power and Associates Reports:
Financial Market Turmoil Takes Toll on Canadian Investor Satisfaction,
Loyalty and Channel Usage
TORONTO: 24 June 2009 — Poor investment performance in a tumultuous financial market has caused overall satisfaction among full-service investors in Canada to decline considerably in 2009 when compared with 2008, according to the J.D. Power and Associates 2009 Canadian Full Service Investor Satisfaction StudySM released today.
Now in its fourth year, the study provides benchmarks for investor satisfaction that allow individual investment institutions in Canada to evaluate how they compare to competitive firms.
The study finds that overall investor satisfaction in Canada has declined to 693 on a 1,000-point scale, marking a drop of nearly 30 points, compared with 2008. Poor investment performance primarily drives the decline, as satisfaction with this factor has dropped by 50 points from 2008.
The rate of switching investment firms has also increased in 2009, with 10 percent of investors indicating they will likely switch firms in the next 12 months, compared with only 6 percent saying the same in 2008. Additionally, investors are less likely to recommend their investment firm to others, with only 24 percent of investors indicating they “definitely will” recommend their primary firm in 2009, compared with 32 percent in 2008.
“One way to help alleviate the negative market impact is to offer stellar advice and proactive and timely communication to clients,” said Lubo Li, senior director and financial services practice leader at J.D. Power and Associates, Toronto. “By offering investors a little soothing touch of support in these tumultuous times, advisors and investment firms may differentiate their services from the competition and increase client loyalty.”
The study also finds that investors are increasingly using diverse channels to receive expert advice from full-service advisors and take advantage of the lower costs associated with self-directing and trading online. For instance, only 25 percent of full-service investors had an online or discount brokerage account in 2008 compared with 36 percent this year.
“Investors are becoming more sophisticated in understanding the value of each channel and maximizing their investments by diversifying their portfolio and trading channels,” said Li. “As investment vehicles become more complex, firms will benefit from providing clients with investment information online and secure online trading that is cost effective and easy to use. The new frugality has arrived.”
Additionally, among those full service brokerage firms that are affiliated with one of the five major banks in Canada, nearly 50 percent of their investors use an online or discount brokerage.
“Financial institutions that offer integrated channel options to investors are better positioned to benefit from this changing trend,” said Li. “This will likely accelerate as the younger generation—which is growing up with online games, Facebook and smart phones—matures and joins the investor ranks in the coming years.”
2009 Canadian Full Service Investor Award Recipients
Six factors are used to evaluate overall investor satisfaction with full-service investment firms and financial institutions that offer wealth management and private banking services: account set-up and offerings; account statements; convenience; cost; investment advisor; and investment performance.
Raymond James Ltd. ranks highest among full-service investment firms with a score of 747 on a 1,000-point scale and performs particularly well in the advisor; investment performance; account statement; and account set-up and offerings factors. Edward Jones closely follows Raymond James Ltd. at 742, performing particularly well in the convenience factor. Dundee Wealth Management Inc. ranks third overall at 725.
The 2009 Canadian Full Service Investor Satisfaction Study is based on responses from 6,183 investors who use investment services with financial institutions in Canada. The study was fielded in May 2009.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com.
Media Relations Contacts:
|
John Tews
J.D. Power and Associates
Director, Media Relations
5435 Corporate Drive, Suite 300
Troy
, MI
48098
USA
(248) 312-4119
john.tews@jdpa.com
|
Syvetril Perryman
J.D. Power and Associates
Specialist, Media Relations
2625 Townsgate Road, Suite 100
Westlake Village
, CA
91361
USA
(805) 418-8103
syvetril.perryman@jdpa.com
|
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate # # #
|
What does J.D. Power and Associates do?J.D. Power and Associates' research, consulting, and performance improvement services are used by a variety of industries to improve product quality and customer satisfaction. The firm's research is based solely on responses from millions of consumers and business customers worldwide. Product and service rankings that result from this research reflect the opinions of consumers and business customers-not the opinion of J.D. Power and Associates. Rankings are derived from nationally syndicated studies that serve as industry benchmarks for measuring and tracking quality and customer satisfaction. J.D. Power and Associates conducts the research, publicly announces the results, and then offers analysis based on consumer feedback to product and service providers to help them improve their businesses.
|