Affluent Investors Increasing the Use of Advisors Despite Wealth of Online and Offline Information.

CHICAGO, March 1 /PRNewswire/ --

The tremendous growth in sources of investment and money management information has not decreased the need for professional advice among the nation's wealthiest households, according to a new report by Spectrem Group. In fact, says Spectrem, it may have contributed to increasing the demand for personal advisors.

"Despite the proliferation of magazines, TV and radio programs and Internet-based services offering investment news and information, we've seen a steady increase among the affluent in their reliance on advisors," said Judy Danielson, a director of the Chicago-based strategic consulting and research firm. Between 1998 and 2000, the use of professional advisors jumped from 61% to 74% among high net worth households -- those with $1 million or more of net worth, according to the study.

"Clients may be more informed about investment options, but they want help discerning the best choices. Like the role played by a personal shopper in a department store, they want their advisors to point them to the best choices to make their decision process simpler," Danielson said. "While we are not going back to the days of advisor dependence with an abdication of decision- making to the advisor, a new, advisor-assisted model has emerged," Danielson added.

Spectrem's 2000 Affluent Market Research Program-A Portrait of Wealth in America, studied the financial preferences and practices of the nation's 19 million households with incomes of $100,000 or higher and/or net worth of $500,000 or more (excluding primary residence). This group includes 6.3 million households with a net worth of over $1 million. These investors, while representing only about 6% of total U.S. households, currently control nearly 60% of the country's $18.6 trillion in investable assets.

An increasing number of affluent households have turned to independent advisors in recent years, the study notes. Today, over one-third of affluent investors consider an independent, such as a Registered Investment Advisor or Certified Financial Planner, to be their primary financial advisor, equaling the number who use a full service broker in this capacity. Why the interest in independents? "First, the importance of a prominent brand name in selecting an advisor is diminishing," says Danielson. "When choosing an advisor, high net worth households first look at the name and reputation of the advisor rather than the brand name of the company or firm the advisor works for. "

But the real story behind the success of independent advisors lies in their ability to develop deeper relationships and increased loyalty with their clients, she says.

"Independent advisors are perceived to listen to the needs of their clients and tailor investment recommendations specifically to those needs. And, as the independent advisors' recommendations have generally delivered good performance in the market, their clients are likely to act on these recommendations in the future."

Spectrem's Affluent Market Research report contains a broad range of additional information on the profile, attitudes and buying behaviors of affluent households.

Spectrem Group (www.spectrem.com) is a national provider of strategic consulting, market research and M&A advisory services to financial institutions. Headquartered in Chicago, Spectrem has offices in New York, Los Angeles and Hartford. Spectrem is an NFO WorldGroup company. NFO WorldGroup (www.nfow.com) is one of the world's leading providers of research-based marketing information and counsel. NFO is one of The Interpublic Group of Companies (NYSE: IPG)

CONTACT:

Jeffrey Close

Spectrem Group

860.688.8821

jclose@spectrem.com