Two firms surveyed for the 2011 Dealers’ Report Card saw their ratings improve significantly in several categories vs last year, while one firm saw its ratings decline by a similar margin in a number of categories. An increase or decrease of half a point or more in a given category vs the previous year’s survey is considered to be significant.
A common thread among advisors at all three firms, however, was the importance of communication between head office and advisors — and the effect that this had on advisors’ overall satisfaction.
Advisors with Toronto-based Assante Wealth Management (Canada) Ltd. rated their firm higher by half a point or more in 13 categories, resulting in an “IE rating” that improved by a similar margin — to 7.6 from 7.1 in 2010.
Assante’s performance in this year’s survey represents something of a turnaround from last year’s performance, when the firm posted significantly lower ratings in 19 categories and its advisors said they were unhappy with the firm’s overall strategic focus and quality of support services, among other issues.
This year, Assante advisors appeared to be happier with their firm’s overall direction, praising Assante’s commitment to advisor independence, its stability, corporate culture, leadership, strength in compliance and its support services.
“There’s a good understanding that it’s our business,” says an Assante advisor in British Columbia, “and they support us as entrepreneurs.”
Assante advisors seemed to be particularly pleased with their firm’s “support for developing a financial plan for clients,” rating the firm at 8.3 — up by a remarkable 2.7 points from last year’s rating of 5.6. The average performance rating in the category among all the firms in the survey was 6.9.
Assante offers support services both in-house and through arrangements with third-party suppliers. The firm has identified financial planning, in particular, as a key focus, and has launched a pilot program to integrate planning software on advisors’ desktops.
“Financial planning is going to be a key differentiating point [for Assante],” says Steve Donald, who has been the firm’s president and CEO since late 2009, when he took over from Joe Canavan.
Assante advisors also praise the “firm’s corporate culture,” giving the firm a rating of 7.9 in the category, up by 1.1 points from last year’s 6.8 rating. They are happy that the firm has reinstated its annual national conference after temporarily cancelling it during the downturn. In addition, advisors feel that communication with senior leadership has improved.
However, Assante advisors remain unimpressed with the firm’s “technology tools and advisor desktop,” giving the firm a rating of 5.9, down by 0.7 of a point from last year’s already low rating of 6.6. Complaints focused on the firm’s failure to fulfil promises on a long-promised desktop client relationship management system upgrade. For its part, the firm says that improving technology is a key priority. (See story on page C14.)
Advisors with Toronto-based DundeeWealth Inc. gave their firm significantly improved ratings in seven categories, as well as in the “overall rating by advisors,” which rose to 8.6, up by half a point from last year’s 8.1.
The firm’s advisors praised DundeeWealth for its strong corporate culture, commitment to advisor freedom, its broad product shelf and its stability. A big reason may be Bank of Nova Scotia buying the 80% of DundeeWealth it did not already own from parent Dundee Corp. in early February.
DundeeWealth advisors laud their firm for its efforts to support them in marketing their businesses. DundeeWealth continues to develop programs aimed at helping advisors get their name out in the public eye, says Richard McIntyre, executive vice president and head of retail.
The ratings in the “firm’s delivery on promises” category, at 8.4, and in the corporate culture category, at 8.3, both improved by more than half a point in this year’s survey vs last year’s. And the rating for the latter category was above the overall average for the category in the survey. Advisors credited the general accessibility of senior management and an improved sense of connection with head office.
“[Company executives] are approachable people,” says a DundeeWealth advisor in Ontario. “They’re innovative, progressive and reasonable.”
On the other side of the ledger, Calgary-based Portfolio Strategies Corp. saw its ratings slide by half a point or more in 10 categories. As well, Portfolio Strategies advisors gave their firm an overall rating of 7.8 — down from 8.3 last year — while the firm’s overall IE rating declined to 7.8 from 8.2.
Although Portfolio Strategies advisors still really like the firm’s no frills, high payout business model — as well as its commitment to advisor independence — many felt that a communication gap is developing between head office and the field. Lack of communication appears to be behind lower ratings of half a point or more in categories such as corporate culture, “firm’s strategic focus,” and “back office and administrative support.”
When asked about what aspect of the firm could be most improved upon, a Portfolio Strategies advisor in Alberta responded: “Being more communicative with advisors. They could be more approachable, more outgoing.”
Adds a colleague in the same province: “We need more communication — although I’m not asking [that] we get hugged to death.”
Portfolio Strategies advisors also took issue with the company’s “client account statements,” saying that they weren’t easy for clients to understand or use. Many advisors said they create and send their own statements to clients — or have told their clients to rely on statements issued by third-party mutual fund companies rather than those issued by Portfolio Strategies.
The firm’s senior managers say they are aware of this communication gap and is working to bridge it by reaching out to branches and advisors — as well as providing more support for marketing, products and compliance. Management is also looking to add more administration and customer service support through new hires.
“Our focus is directed at the advisor,” says Mark Kent, Portfolio Strategies’ president, “because we don’t really deal directly with clients. It’s always through the advisor.”
On a positive note, Portfolio Strategies advisors gave their firm relatively stronger ratings in categories such as “firm’s total compensation,” delivery on promises, “quality of firm’s product offering” and the “firm’s due diligence process for new products.”
Portfolio Strategies offers its advisors the opportunity to sell “exempt” products, something advisors at the firm appreciate. The advisors, however, depend on the firm to screen these products — and to winnow out potentially problematic ones.
Says a Portfolio Strategies advisor in Alberta: “[Due diligence on new products] is one of [the firm’s] strongest points.” IE