In filming this television series, I was fascinated to see the process of real investors going through a guided journey to understanding investing better. One of the better aspects of seeing this journey was witnessing how the three advisers guided their clients through the process.
Each of our investors were facing very different personal financial situations – but it became clear that as we watched them reveal their goals and aspirations, that all three of them had a certain level of trepidation around money and the processing of investing. How much would they need; would they have enough; and would they lose their money in managed funds?
One of the most critical roles their adviser played was to help them both rationally and emotionally come to grips with the decisions they needed to make, and the logic behind them.
While each of the advisers were very different in style, they all displayed one thing in common – that was an emotional connection to their clients goals – and the ability to empathetically and professionally communicate those goals back to them in a way that gave the investor confidence that they were being heard, and that could formulate a plan that could deliver on those goals.
It really struck me that perhaps this engagement was the most important role an adviser could play. While many may turn to robo – advice style offerings to tap into lower fees and a do it yourself mentality, it is hard to replace the very human connection that good advisers have with their clients.
The role of trusted guide may well be one that is irreplaceable – and perhaps the pricing model of that role needs to change as an investor moves from low touch to high.
It is well worth watching the process of awakening that our investors went through as they got the opportunity to watch the actual fund managers pitching their approach to investing to our guardians ( the CEO’s of the research houses Lonsec Research, Zenith Investment Partners and netwealth Investments).
Firstly, the fact that there were so many different styles of investing genuinely seemed to excite all three of the investors. As someone who has been in the industry for more than 20 years, I have long admired the skillset and expertise of our fund managers. It was very rewarding to see the realisation our investors had around the skills and prowess the managers in this series had. It gave them confidence and a desire to know even more – far from the mistrust and fear that they may have had going into the process.
However, even armed with this knowledge, they still relied on their adviser for more guidance – had they understood, could it work for them and how much risk did it represent?
Their admiration of the role the research houses played was also interesting to watch. One investor commented that they did not know the researchers even existed. Again, our advisers were able to demonstrate the relationship that adviser and researchers had which helped screen for quality and therefore peace of mind.
By opening our doors to the wider community, the financial services community has a lot to gain in connection and engagement.
Similarly, but demonstrating the value of the role as trusted guide, advisers also can show the investing public how important their role is moving forward. It is our hope that in creating and sharing authentic content about our industry, and making it broadly accessible, that we can build a bridge from the adviser to consumer… This is what we believe is the first step forward in repairing trust with the broader public and giving them confidence in their ability to develop their own financial futures.
