Conversations about the value of financial advice have historically anchored around portfolio performance and financial health, but a new study by Vanguard’s Advisory Research Centre suggests UK investors value their advisers for much more than that.
The report, Client Connect: The Vanguard Advice Survey 2025, found that while the value of financial advice is broadly well-perceived by clients, there are some critical disconnects between client preferences and typical adviser practices. These misalignments present an opportunity for advisers to deliver more value and differentiate their services.
More than 1,000 advised investors and 200 advisers from across the UK took part in the study, which found that relationship-building activities are more important than investment performance for building clients’ loyalty and trust—key factors for driving long-term advisory relationships.
Here, we share some of the key insights from the report:
The survey confirms that the value of financial advice is well-recognised among UK investors, with an impressive 94% saying that working with an adviser has improved their portfolio returns—adding a perceived average of 6.5% in additional annual returns, or alpha.
The study also found that while investors tend to articulate the value of their advisory relationships in terms of portfolio performance, they measure the full value of their advisers in broader terms than advisers may realise.
Personalised levels of service, emotional support and transparency around fees and costs were perceived by investors as the most valuable aspects of working with an adviser. Investors rated these components as important as an adviser’s investment knowledge and portfolio returns in contributing to their overall satisfaction with their adviser.
Nearly all (93%) of the investors believed the “human element” of working with an adviser was key to building a successful advisory relationship, with an adviser’s soft skills—such as empathy and active listening—essential qualities for building trust, according to the survey.
Importantly, the study highlighted that clients highly value quality time and having a personal connection with their adviser as key to building loyalty—but the majority of advisers are falling short, with only 28% of investors feeling they always receive a truly personalised advice experience.
Meanwhile, 65% of advisers said they always provide personalised advice to their clients—suggesting a disconnect between investors’ perceptions of their adviser’s service and what advisers are actually delivering.
For advisers, the path to greater client satisfaction and asset growth lies in devoting more time to engaging directly with clients and their families and developing more personalised connections.
Spending more time building client relationships through highly personalised advice means spending less time on portfolio management.
Advisers who outsource investment management and streamline routine work processes in their practices can free up a significant amount of time each week and focus on delivering the elements of advice that can’t be commoditised: human connection and strategic long-term guidance.
By leveraging technology solutions that streamline routine administrative processes, and outsourcing portfolio management activities to a trusted investment manager, advisers can spend more of their time focusing on activities that clients put a high value on, as detailed in the report.
Figure 1: Streamlining can help advisers focus on higher-value services
Source: Vanguard.
A key finding in the report relates to the significance of behavioural coaching, with a vast majority of investors saying their adviser helps them make smart decisions and avoid financial mistakes, such as reacting to large market swings (83%) or the urge to chase returns in ‘hot’ investments (78%).
Providing emotional guidance is one of the most overlooked benefits that advisers can offer their clients. Vanguard’s Adviser’s Alpha® research suggests that behavioural coaching can add approximately 1.5% annually to a client’s net returns1—and could be the single most significant source of alpha provided by an adviser.
With an estimated £7 trillion in assets expected to be transferred across generations over the next three decades2, legacy planning is fast becoming a core component of an adviser’s discussions.
The study found that more than 70% of investors want to work with their adviser on legacy planning—but many said they would prefer to begin the conversation earlier—ideally in their 40s or 50s. Meanwhile, the advisers we surveyed tend to begin legacy planning conversations when their clients are in their late 50s and 60s.
The new report highlights that, more than ever, clients want more from their advisers. While performance of portfolios matters, they also crave more personalised relationships, confidence in their financial futures and greater peace of mind. Advisers who deliver on these needs are more likely to develop stronger connections with their clients that help secure the future of their practices.
Explore the full survey results by downloading the report here.
1 Source: Vanguard, 2025: Quantifying Adviser’s Alpha in the UK.
2 Vanguard Analysis based on ONS 2020 Wealth and Assets Survey and 2020 National and Subnational Mid-year Population.
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