Advised clients want clearer language used in the investment explanations they receive in communications from their adviser, according to a new report.
Two in five advised clients (42%) also complain that the investment explanations they usually receive focus more on investment products and less on them and their goals.
This rises to over half (55%) of clients under the age of 50, according to new research from fintech and service provider SEI and financial consultancy TheLangCat which surveyed 1,700 clients holding at least £100,000.
Clients also complained about a lack of context within investment communications.
Of those surveyed, two in five (40%) said they were not clearly told whether they were on track to meet their goals. This includes 15% who receive numbers or performance data without an explanation of what the information means for their progress, and 12% whose reports do not address their goals at all.
A quarter of clients (25%) said they often had to determine for themselves how their investments align with their goals. That figure rises to 46% among clients under 50, compared with 10% of those over 65.
Two-thirds of clients (60%) said the most useful aspect of their adviser’s investment explanations was an acknowledgement of their personal circumstances rather than generic information.
The findings revealed a clear disconnect between how the industry describes investments and how clients think about their money.
Under 1% of advised clients express their financial goal as a number, date, or amount, and just 3% referred to maximising returns. The terms “benchmark,” “asset allocation,” and “rebalancing” do not appear once across more than 1,000 responses; “volatility” appears only once.
Instead, 96% of advised clients describe their goals in directional and personal terms such as having “enough” to live on, feeling “comfortable” or “secure,” and making sure their money will “last” so they do “not run out.”
Ben Cooper, head of asset management partnerships, IFA & wealth, Europe at SEI, said: “Clients define financial success through the outcomes they want to achieve, yet our industry too often communicates through the mechanics of investing. Advisers bridge that gap every day, but much of the information they translate originates further upstream from providers, platforms, and investment managers.
“These findings reveal an opportunity to move beyond explaining how investments are structured and show more clearly how they can help clients achieve what matters most in their lives. Clear communication is not just about removing complexity; it is about making complexity relevant.”
• YouGov surveyed 1,071 UK advised clients with over £100,000 in assets on behalf of SEI and TheLangCat between 31 July and 5 August.
Financial Planning Today Analysis: Most industry experts will find these survey results disappointing. They suggest a gulf between what clients want to know from the people who look after their money and what they actually get. There is a clear barrier here to clients fully understanding their investments and clients' expectations of clarity and transparency. Many will say clients do not need to understand how all their investments to appreciate their growth but this is a patronising and dated attitude. As the survey suggests, much more work is needed to help clients understand the statements and updates sent to them. Talking to clients about whether they understand what they are sent will be key. It needs to be a two way conversation between adviser and client.