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Why advice matters

09 October 2018 | Practice Management

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Transcript

Francis Kinniry:

Trust obviously within advice is a key component.

What we see in study after study, is that most investors change advisers more because of lack of communication, lack of feedback, and lack of just getting back in touch with the clients, so building trust is very, very important in the adviser-client relationship.

The human factors of the adviser relationship are critical because let’s face it, investing is emotional; we’ve seen many episodes where the market declines 20%, 30%, even 50% as it did in 2008, and that can be followed by big bull markets like we had in the nineties and the one we have experienced since 2009.

And so you have these emotional peaks and valleys within the market and it becomes very difficult for clients to stay the course, very difficult to rebalance the portfolio. What is really required for the relationship to thrive is the relationship with the adviser and the client – to help them over that emotional reaction to the market.

Twenty years ago, Vanguard developed the Vanguard’s Adviser’s Alpha framework. Since that time, twenty years later, we remain committed to showing the value of advice so advisers can help their clients achieve financial success.

 

The Advantage of Advice

Professional advice is key to investor success. But how are advisers adapting to a complex future? Find out more and register your interest for a 2019 workshop.

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Investment Risk Information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Important Information

This video is directed at professional investors in the UK only, and should not be distributed to or relied upon by retail investors. It is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.

The information in this video does not constitute legal, tax or investment advice. You must not, therefore, rely on the content of this video when making any investment decisions.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.

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