(Adds chart with scores of all companies that were part of the
survey.)
DOW JONES NEWSWIRES
Despite a considerable improvement in overall investor
satisfaction from last year, investor perceptions of their
investment firms as being customer-driven continues to decline, a
study by J.D. Power & Associates found.
The survey, now in its eighth year, measures overall investor
satisfaction with investment firms in a number of factors,
including investment performance, account offerings, and problem
resolution.
The market researcher found that overall investor satisfaction
averaged 769 on a 1,000-point scale, climbing from 731 last year.
The jump was due primarily to improved satisfaction with the
financial-adviser relationship and investor perceptions of
investment performance, according to J.D. Power.
However, investors' positive sentiment regarding their
investment firms continues to decline. Overall, an increasing
proportion of investors polled this year believe their firms are
driven by profits, rather than being focused on customers.
"During the past year, most investors have enjoyed positive
short-term gains in their portfolio as a result of the market
recovery, but this has not translated into an improvement in
investor sentiment toward their firm," said David Lo, a J.D. Power
director.
Edward Jones & Co. ranks highest in investor satisfaction
for a second consecutive year, having a score of 794 and performing
particularly well in investment adviser and investment performance,
J.D. Power said. Royal Bank of Canada's (RY, RY.T) RBC Wealth
Management was next at 793, with its investment-adviser and
account-information ratings being standouts. Independent
broker/dealer LPL Financial was third with 791.
Lowest of the 12 firms ranked by J.D. Power was J.P. Morgan
Chase & Co. (JPM), which had a score of 739.
The study is based on responses from 4,460 investors who make
some or all of their investment decisions with an investment
adviser. The study was fielded in May.
Overall Investor Satisfaction Index Scores
(Based on a 1,000-point scale)
FIRM INDEX SCORE
Edward Jones & Co. 794
Royal Bank of Canada (RY, RY.T) 793
LPL Financial 791
Charles Schwab Corp. (SCHW) 786
Raymond James Financial Inc. (RJF) 778
Ameriprise Financial Inc. (AMP) 776
Fidelity Investments 759
UBS AG (UBS, UBSN.VX) 759
Wells Fargo & Co. (WFC)/Wachovia 759
Morgan Stanley (MS) Smith Barney 753
Bank of America Corp. (BAC)/Merrill Lynch 747
J.P. Morgan Chase & Co. (JPM) 739
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com