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Asset Preservation Advisors




City:Atlanta

State: GA



BIOGRAPHY:
APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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The Ethnic Investor, Part 3: Satisfaction

Approximately one-third of all investors are more satisfied with their advisor now than they were in the recent past.  

| BY Kent McDill


Financial advisors often need to tailor their advice based on the investor’s age, gender, wealth level, occupation and advisor dependency. They also need to consider the investors’ ethnic background. Spectrem’s new study in its Ethnic Segmentation Series – “Advisor Relationships and Changing Advice Requirements” – examines the different ways ethnic investors relate to the advisor with whom they work. The study looks at investors of affluent African-American, Hispanic and Asian backgrounds.

The need of advisors to take into consideration the ethnic background of investors is perhaps most important when it comes to maintaining a level of satisfaction in the investor. Ethnic investors, especially Asian investors, currently indicate a lower level of satisfaction with their advisors than non-ethnic investors do.

Spectrem’s Ethnic Segmentation Series report on advisor relationships shows that ethnic investors – African-American, Hispanic and Asian - are generally less satisfied with their advisors than non-ethnic investors are. In some specific factors, the difference in satisfaction levels is stark.

In terms of overall satisfaction, 75 percent of non-ethnic investors are satisfied, while only 42 percent of Asian investors report satisfaction. Only 55 percent of affluent African-American investors are satisfied, and 67 percent of Hispanics are pleased with their financial advisor overall.

The highest level of satisfaction among non-ethnic investors is in responsiveness to requests, with 80 percent saying they are satisfied with how quickly the advisor gets back to them following a request for information. Again, however, only 44 percent of Asians are satisfied with that aspect of their advisor relationship, and 65 percent of African-Americans are pleased with the response time from their advisor. African-American investors are more closely aligned with non-ethnics, at 79 percent satisfaction.

Knowledge and expertise is another area of satisfaction investigated by the Spectrem study. Among non-ethnic investors, 79 percent are satisfied with their advisor’s knowledge, and 74 percent of African-Americans are pleased as well. But only 45 percent of Asians and 63 percent of affluent Hispanic investors are satisfied with their advisor’s expertise.

Satisfaction rates are often tied to portfolio performance, and with the improving economy, satisfaction rates are climbing. Thirty-nine percent of Hispanic investors say their satisfaction level has risen in recent times, and 31 percent of Asians are more satisfied now than in the past. With African-Americans already reporting a high level of satisfaction, only 29 percent report a greater satisfaction in recent months and years.

 More investors, both ethnic and non-ethnic, find their advisor through referrals from friends and family. But almost 20 percent of African-Americans found their advisor by investigating a certain product that advisor specialized in, while 18 percent of Asian investors said the advisor contacted them.



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.