Surveys
SEI Study Shows Disconnect On Transparency
Wealth managers and their clients want different levels of communication when it comes to transparency, according to a research report by SEI entitled Tackling Transparency.
While both groups say that increased transparency is of paramount importance, wealth managers and their clients differ on the level and nature of communication they are seeking.
The report, the latest in a series of papers that examines the changing relationship between investors and their wealth managers, is the first in the series to examine the North American market.
The paper is the result of in-depth interviews carried out by the consultancy Scorpio Partnership that compared the views of 250 wealth managers and their clients on transparency to gain understanding of how their viewpoints of this topic do or do not align.
The findings show a clear discrepancy between what wealth managers believe they are delivering and what investors believe they are receiving. Investors want an open dialogue and an easy method to understand their portfolios – and how it connects with their goals and the markets.
But clients say what they typically receive from wealth managers is a complex report filled with information on transactions, tax, fees, products and services, without any analysis or explanation of how it relates to their personal circumstances. Additionally, the report demonstrates a disconnect as findings indicate that wealth managers say they have a strong understanding of their clients' goals, and that they excel at explaining their fee structures.
"Wealth managers and their clients agree on the need for greater transparency, but seem to differ on how to define it," said Al Chiaradonna, senior vice president for SEI's Global Wealth Services. "What we're talking about is 'usability' – as an industry we're expending great effort on transparency but still not truly delivering what clients are asking for.”
“Wealth managers should ask themselves how they can provide a more dynamic reporting core that offers information and insight, not just data,” he added.