Why trust is the most important part of wealth management

09 October 2019 Private Client Holdings

When it comes to wealth management and investing, trust is the equivalent to “Location, Location, Location” when buying property. For investors, and those looking for guidance on their financial well-being, it is all about Trust, Trust, and more Trust.

Investing and wealth management has more to do with trust than it does with chance and luck and cultivating an investment on its own - it requires dedication, attention and time to establish, but once earned, and with maintenance, it can span generations.

This is according to Andrew Ratcliffe, Director of Private Client Holdings, a full-spectrum wealth management company who recently excelled in the Intellidex People’s Choice award – which is based purely on feedback from a confidential client survey. Private Client Holdings achieved 9.88 / 10, the highest score for Trustworthiness in the Top Wealth Managers in South Africa category.

“The reason we place such value in this acknowledgment of trust is because we believe that there is no honour greater than to be the keeper of another’s trust. As the keeper of our clients’ trust, we must conduct business openly and transparently and act diligently, discretely and always in our clients’ best interests. Trust is one of our 3 core company values. The others are professionalism and client centricity”

Trust as a differentiator

Technological advances and evolving regulations are changing the wealth management landscape, making it more important than ever for advisors to distinguish themselves. Research and experience have shown the importance of relationship management in attracting and retaining clients in a shifting advisory space.

“Wealth managers need to show their value outside of – or indeed in addition to - traditional portfolio management,” says Ratcliffe. “The superior experience clients are looking for is a personal relationship with an advisor who not only understands their goals but is managing their wealth in accordance with those goals. At the core of this differentiation is a simple factor: trust.”

Why Trust Matters

Referrals are essential for growing client numbers and often more than half of a firms client base are gained through referrals. “Without a high level of trust our clients are unlikely to recommend our services to others.”

Transparency is critical for supporting these pillars of trust. “Lack of clarity and lack of transparency prevents clients from ever fully trusting that an advisor has their best interest at heart.”

Cultivating Client Trust

In order for advisors to nurture and deepen their client relationships, it is essential that they understand the foundation on which trust is built. According to Ratcliffe, advisors should focus on educating clients, managing their own time efficiently, framing their advice with clients’ goals in mind and communicating effectively.

“Good communication requires that wealth managers do more listening than talking. Effective listeners can better identify their clients’ goals and concerns and develop planning and investment solutions tailored to each client’s unique situation. This means dialling down the white noise and focusing on the client – what they need and want – and not necessarily on what the market is doing at any given time.”

This approach is in line with the principles of Mindfulness, which has been incorporated into the culture of Private Client Holdings – who are using it to underpin the company ethos of “nurturing wealth”.

“The recent results from the Intellidex awards speak for themselves and we are extremely pleased that our core value and efforts to cultivate client trust have proven successful,” concludes Ratcliffe.

Quick Polls


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