SEI Survey Shows Communication at Root of Advisor-Client Relationship Demise

Advisors Highlight Warning Signs that Clients are Dissatisfied

OAKS, Pa., Jan. 26 /PRNewswire-FirstCall/ -- Advisors need to communicate more clearly to avoid straining or losing client relationships, says a survey by SEI (Nasdaq: SEIC), a leading global provider of outsourced asset management, investment processing and investment operations solutions. The poll, conducted among nearly 100 clients of the SEI Advisor Network, revealed that 28 percent of advisors attributed client relationship failures to a lack of understanding. Participants cited this as more detrimental than either poor investment performance or competitive pressures.

Forty percent cited that unrealistic expectations can be a primary driver of the downfall of failed relationships. Advisors also tended to blame those expectations on a lack of clear and consistent communication.

Participating advisors provided feedback and advice regarding indicators that the client relationship might be headed for trouble:

     Your clients are consistently contacting you more than you're contacting
     them.
     53 percent of advisors stated that frequent, proactive communication was
     at the heart of their strongest client relationships. Clients should
     receive advice from you; they shouldn't have to ask for it. Even low-
     maintenance clients expect you to counsel them before they feel pain.
     This might seem an unrealistic demand to meet, but by staying visible,
     client anxieties will be quelled more quickly, preventing them from
     blaming festering discomfort on neglect.

     Clients are telling you what they want to do - not asking you what they
     should do.
     Advisors give advice; they don't fill orders. When you're relegated to
     the order-filling role, you become less valuable and more dispensable to
     your clients. Your ability is also based solely on investment
     performance, and it's a clear indicator your clients are losing trust in
     your expertise. While your control over investment performance is
     limited, you can demonstrate value in many other ways. One recommendation
     is to educate them on the process as much as possible, keeping activity
     simple, yet transparent.

     You're the last to hear of a monumental event in a client's life.
     A child's engagement, an extended vacation, even a new car. Not every
     client is going to call you with news in the middle of the night, but if
     they're making major life decisions without you, chances are they're
     getting their advice somewhere else. Regardless of whether they're
     talking to their family, friends - or worse - another advisor, they're
     not talking to you. Again, this is a sure-fire sign they may be beginning
     to question your advice - and could be on the brink of abandonment.
     Beginning conversations about their lives versus their money will help
     you know what's really on their minds and what might be on the horizon.
     Ultimately, your client will trust you're interested in more than their
     financial health and will be less likely to leave.

When asked how to overcome the challenge of frequent, yet personal communication, some advisors stressed the need for creative solutions. One example included Keith A. Heichel of Pinnacle Wealth Planning Services, Inc. in Mansfield, OH, who invested in video conferencing technology for his firm as well as affiliate organizations.

"Pinnacle emphasizes a team-based orientation when working with our financial planning clients," said Heichel. "So often times, we include the client, as well as their CPA and attorney, all via video conference. Everyone is on the same page, we save on travel time and keep the meeting personal."

Overall, advisors overwhelmingly recommend communicating as frequently as possible from the start of the relationship - before problems arise. Building a foundation of trust and open communication demonstrates your commitment to a comprehensive understanding of your client's situation and reassures that he or she is not just a number.

About SEI Advisor Network

SEI Advisor Network provides independent advisors with outsourced wealth management platforms that are designed to meet the demands of a new generation of wealthy clients. In an evolving wealth management industry, the group offers an end-to-end process for successfully transforming their clients' businesses in every critical area, including marketing, practice management, investment strategy and client relationship platforms. The SEI Advisor Network is a strategic business unit of SEI. For more information, visit http://www.SEIAdvisorNetwork.com.

About SEI

SEI (Nasdaq: SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of the period ending September 30, 2006, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $344.9 billion in mutual fund and pooled assets and manages $168.9 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from more than 20 offices in over a dozen countries. For more information, visit http://www.seic.com.

    Company Contact:            Media Contact:
    Dana Grosser                Caralyn Gilotti
    SEI                         Braithwaite Communications
    610-676-2459                215-564-3200 x12
    dgrosser@seic.com           cgilotti@braithwaitepr.com

SOURCE  SEI

Released January 26, 2007