Canadian investors are more satisfied with their investment firms today than they were a year ago, according to a study released by Toronto-based J.D Power and Associates on Thursday.

The Canadian Full Service Investor Satisfaction Study found that overall satisfaction with Canadian full service investment firms rose to 737 points (out of 1,000), up 17 points from 2012. The study suggests clients are happier with their firms because of improved market performance and effective advisor communication.

The study measures the overall satisfaction of investors with full service investment firms and financial services offering wealth management and private banking services. Clients rank their satisfaction in seven categories, each of which is given a specific weighting to the overall score. The categories and their weightings are as follows: investment advisor (38%), investment performance (18%), account information (17%), account offerings (14%), commissions and fees (8%), website (2%), problem resolution (2%).

Firms with advisors who keep in contact with clients and explain investment portfolio performance had an overall satisfaction rating that was 145 points higher than those firms whose advisors left their clients in the dark.

“Investment performance certainly helps drive and increase in overall satisfaction, but the advisor still plays a key role,” said Craig Martin, director, investment services, J.D. Power, in a release. “Even when the market is strong, advisors need to ensure their clients understand the reasons for their portfolio performance, explain costs and fees and manage expectations regarding risk.”

Client satisfaction also gets a boost when advisors talk to their clients about fees. J.D. Power’s study results showed that on average overall satisfaction with an investment firm rose 99 points when advisors explained fees to their clients. However, despite the positive effect of discussing fees, fewer advisors are doing so. Only 57% of investors surveyed said their advisors had explained their fees, according to the study, compared to the 63% of investors who discussed the topic with their advisors in 2013.

Mississauga, Ont.-based Edward Jones, DundeeWealth Inc. in Toronto and Raymond James Ltd., also with headquarters in Toronto, were the top three investment firms in this year’s study.

Results for the 2013 satisfaction survey came from 5,592 investors surveyed between May and June. All respondents use advice-based investment services with Canadian financial institutions.