Edward Jones Ranks Highest among Full Service Investment Firms for a
Second Consecutive Year
TORONTO, June 18 /CNW/ - Investors who use financial planning services
are much more satisfied in their relationship with their firm than those who
do not, according to the J.D. Power and Associates 2007 Canadian Full Service
Investor Satisfaction Study(SM) released today.
Now in its second year, the study provides a benchmark for investor
satisfaction and creates norms that allow individual investment institutions
in Canada to evaluate how they compare to competitive firms. Six factors are
utilized to evaluate overall investor satisfaction with full-service
investment firms: account set-up and offerings; account statements;
convenience; cost; investment advisor/team; and investment performance.
The study finds that while only 30 percent of investors report having a
formal written financial plan, those who do report having much higher levels
of satisfaction than investors without a plan. Additionally, among those
investors who have a written plan, overall satisfaction with their investment
firm is even higher when the plan is executed by their primary investment firm
rather than a secondary firm, accountant, lawyer or themselves.
"Having a clear, formally written financial plan in place is not only
beneficial to the investors, but also to the investment firm, as it gives them
a much better idea of the expectations and financial goals of their
customers," said Charles Schade, senior director of research at J.D. Power and
Associates. "Sitting down and developing a plan is also one key way to build
the relationship between the advisor and investor, as interaction with the
financial advisor has the most significant impact on overall satisfaction with
Edward Jones ranks highest with an index score of 791 points on a
1,000-point scale, performing particularly well in investment advisor/team;
investment performance; account statements; and account set-up and offerings.
TD Waterhouse Private Investment Advice follows with 774 points, receiving
high ratings from customers in the convenience factor, and ScotiaMcLeod ranks
third with 766 points. Both TD Waterhouse and ScotiaMcLeod increased their
satisfaction score by more than 20 index points from the 2006 study.
Overall, the industry average has improved to 763 index points in 2007 -
up 15 points from the 2006 study. The increase in satisfaction is primarily
driven by the banking-associated firms, while satisfaction with most non-banks
has essentially remained flat from 2006 results. Specifically, banks have
improved most within the investment performance factor.
"It is important to note that at nearly 60 months, we're currently in the
longest-running bull market Canada has seen in recent decades," said Schade.
"Performance plays an integral role in driving overall satisfaction, and
customers who are feeling positive about their investments are generally
happier. However, across the board, the investment arms of the banking
institutions have been doing a better job of listening to their customers and
being more attentive to their needs." Regarding image, the study also finds
that firms that are perceived to have higher fees receive more positive
satisfaction ratings from their investors than are firms perceived to have
"Investors are generally more accepting of higher fees when their
portfolio performance is strong," said Schade. "Even investors who are paying
more for product offerings and services generally feel as though they are
getting more value for their money when the market is doing well."
The 2007 Canadian Full Service Investor Satisfaction Study is based on
responses from 3,357 investors who use full-service investment institutions.
The study was fielded in April and May 2007.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
an ISO 9001-registered global marketing information services firm operating in
key business sectors including market research, forecasting, performance
improvement, training and customer satisfaction. The firm's quality and
satisfaction measurements are based on responses from millions of consumers
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading
global information services provider meeting worldwide needs in the financial
services, education and business information markets through leading brands
such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power
and Associates. The Corporation has more than 280 offices in 40 countries.
Sales in 2006 were $6.3 billion. Additional information is available at
No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
NOTE: Detailed chart available upon request
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