Dow Jones

November 15, 2005 14:00 ET

Dow Jones Newswires Releases White Paper Chronicling the Role of Client Loyalty in Wealth Management

NEW YORK--(CCNMatthews - Nov 15, 2005) -

Research Finds That ``Wealth Managers'' Capture Over 15 Times More New Assets Under Management Than Traditional Financial Advisers

Dow Jones Newswires today released a new white paper--"Building Client Loyalty: The Case for a Wealth Management Solution"--that examines the relationship between client loyalty and the business success of financial advisers. The study found that financial advisers practicing "wealth management"--an approach characterized as highly consultative and with frequent client contact--enjoyed significantly higher rates of client loyalty and dramatic increases in assets under management (AUM).

Indeed, in the past 12 months, "loyal" clients were found to entrust their advisers with over 15 times more additional assets than clients who are simply "satisfied" allocate to their advisers. An overwhelming 94.4% of "loyal" clients said they are "extremely" or "very likely" to give their financial advisers more assets in the coming year.

"Unfortunately, the study finds that while advisers are focused on adding the next high- net-worth investor to their practice, they're overlooking the wealth of assets loyal clients are willing to bestow," said John Bowen, founder of CEG Worldwide, LLC, which conducted the studies for the white paper.

In addition to quantifying the financial benefits advisers enjoy by employing the wealth-management approach, "Building Client Loyalty" details the six factors critical to successful, long-term relationships with high-net-worth investors: "Consultative," "Character," "Chemistry," "Caring," "Competence" and "Cost-effectiveness." Of these, "Consultative" is the most important for advisers to include in their practice, given that it frames the entire adviser-client relationship as an ongoing, communication-rich partnership.

"Communication is the bedrock of a quality relationship between wealth managers and their clients," said Joseph Lanza, vice president, sales and marketing, Dow Jones Newswires - Americas. "High-net-worth investors both value and expect ongoing communication with their wealth managers--even on non-financial topics. This report shows that contacting clients just two times per month can build the kind of loyalty that delivers AUM to advisers."

To get an executive summary of "Building Client Loyalty: The Case for a Wealth Management Solution," email The complete white paper is available from Dow Jones Newswires during client consultations.

In September, Dow Jones Newswires launched "Dow Jones Wealth Manager Direct," a relationship-building solution designed for branch offices and independent financial advisers. The solution enhances client communication by arming financial advisers with frequent, substantive reasons to contact clients and deepen relationships. For more information about Dow Jones Newswires' solutions, email

About Dow Jones Newswires

Dow Jones Newswires ( offers real-time news and information solutions for financial professionals providing investment, advice and institutional services. The division also offers news for financial firms' Web sites and Dow Jones Financial Information Services' database, newsletter and event businesses. In addition to Dow Jones Newswires, Dow Jones & Company (NYSE: DJ; publishes The Wall Street Journal and its international and online editions, Barron's and the Far Eastern Economic Review, Dow Jones Indexes, MarketWatch, and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva, with Hearst of SmartMoney and with NBC Universal of the CNBC television operations in Asia and Europe. Dow Jones also provides news content to CNBC and radio stations in the U.S.

Contact Information

  • Walek & Associates for Dow Jones Newswires
    David Rosen, 212-590-0532