LPL Financial receives high scores for investment performance and collaborative advisor relationship

LPL Financial ranks third in overall satisfaction nationally in the J.D. Power and Associates 2010 Full Service Investor Satisfaction Study.^SM  This is the third consecutive year that LPL Financial is among the top five investment firms nationwide in customer satisfaction. The study measures overall investor satisfaction with full service brokerage firms based on seven factors that influence the customer experience: Investment Advisor; Investment Performance; Account Information; Account Offerings; Commissions and Fees; Website; and Problem Resolution.

With an overall score of 791 on a 1,000-point scale, LPL Financial scores 22 points above the industry average. LPL Financial receives high scores in the two factors that have the highest impact on the overall customer satisfaction experience. In the Investment Performance factor, LPL Financial leads the industry with a score of 742 (39 points above the industry average) and ties for second in the Investment Advisor factor with a score of 875 (36 points above the industry average). While the market has experienced performance improvements in 2010, LPL Financial is the only firm in the study with an improved Investment Performance ranking in each of the past 3 years. LPL Financial customers say their portfolio performance is due to their investment advisor (69%), more so than to their own investment decisions or market fluctuations (10% and 21%, respectively).

“With an overall score of 791 on a 1,000-point scale, LPL Financial scores 22 points above the industry average.”

Since 2008, customers in the investment services industry have placed increasing importance on their investment advisor and less importance on the performance of their portfolio. According to customers, LPL Financial advisors develop strong relationships with them, and these customers are more likely to recommend their LPL Financial advisor than are customers of other investment firms included in the study. Customers say that LPL Financial has knowledgeable advisors who also inform them of up-to-date market trends and developments.

“Customers say that LPL Financial has knowledgeable advisors who also inform them of up-to-date market trends and developments.”

 At an industry level, customers who engage in a collaborative relationship with their advisor are far more satisfied with their investment firm, compared to those customers with a more “hands-on ” relationship. LPL Financial advisors demonstrate this particularly well, as nearly 3 in 4 customers say they have a collaborative relationship with their investment advisor.  This is due, in part, to LPL Financial advisors being among the most likely in the industry to discuss and incorporate customer risk tolerance and portfolio asset allocation and investment needs.LPL Financial customers are also more committed to their firm, compared to the industry average (43% highly committed), which is driven in part by an improvement in customers’ perceptions of the firm’s reputation. The relationships cultivated from the [LPL Financial] network of advisors results in the highest percentage of investors who say the advisor is actingin the investor’s best interests (97%).