SOURCE: Spectrem Group

June 01, 2011 08:00 ET

Mass Affluent Cite Investment Provider Reputation as No. 1 Factor in Choosing Investments

81% Focus on Reputation of Companies Where Investments Are Made; Finishes Ahead of Investment Risk Level, Diversity

CHICAGO, IL--(Marketwire - Jun 1, 2011) - Reputation matters.

A full 81% of mass affluent investors focus on the reputation of companies where their investments are made in choosing investments, according to a new Spectrem Group report, "Mass Affluent Investors 2011, Vol. 1," released today. This places reputation ahead of factors such as investment risk level (80%) and diversity (78%).

Mass affluent investors, an important wealth group, are defined as those with a net worth of $100,000 to $1 million, not including primary residence (NIPR).

"In the wake of the recession, mass affluent investors are more attuned to the reputation of firms offering investments than any other factor in the investment process. For this group, reputation is more important than risk level and diversity in making investment choices. This suggests lesser-known firms may be at a disadvantage in working with the mass affluent and should put extra effort into demonstrating their stability and integrity," said George H. Walper, Jr., President of Spectrem Group.

Other factors finishing behind reputation for the mass affluent are investment track record (70%), tax implications (70%) and social responsibility (43%).

Additional insights are available on Spectrem's newly launched Spectrem's Millionaire Corner website ( They include:

The Spectrem Group study "Mass Affluent Investor 2011, Vol. 1" is based on an online survey of the financial decision-makers of 1,375 households with a net worth of $100,000 to $1 million, not including primary residence (NIPR). The study was conducted throughout the first quarter of 2011 and has a margin of error of plus or minus 2.6 percentage points.

About Spectrem's Millionaire Corner
Spectrem's Millionaire Corner website ( is a powerful source for up-to-the-minute news and information for investors, about investors designed to fuel financial growth. It incorporates Spectrem Group research as well as outside information. In the future, the site will offer financial advisor referrals.

About Spectrem Group
Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets, integrating proprietary research with expertise in building business, marketing and M&A strategies. Its professionals have held senior management positions at leading global companies.

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