UPDATE: Edward Jones Tops Adviser-Satisfaction List -JD Power

(Updated with chart, additional information, in the eighth paragraph.)

 
  DOW JONES NEWSWIRES 
 

Edward Jones & Co. ranked highest in a study of how satisfied investors were with their financial advisers, according to research company J.D. Power and Associates.

The study found that the financial adviser was the most important aspect of overall investor satisfaction, making up 30% of what investors look for, up from 22% a year earlier. Investment performance fell in importance to just 15% of overall satisfaction from 24%.

Amid the market downturn and volatility in recent months, many investors are increasingly looking to advisers for guidance on their plans.

"As investors become increasingly uneasy amid current market conditions, they're more often looking to their financial advisers for reassurance and guidance," said David Lo, director of investment services at J.D. Power.

The firm said the study also found better communication from the adviser may increase investors' satisfaction, especially by contacting investors to set a financial plan, thoroughly explaining fees and providing clear explanations for investment performance.

Edward Jones scored 784 out of a possible 1,000 points and did particularly well in convenience and account statements, the study found. LPL Financial Services followed with 773 points, while Charles Schwab & Co. (SCHW) ranked third with 771.

Bank of America Corp.'s (BAC) brokerage operations came in last place of companies with a sufficient sample size, with 700 points.

J.D. Power said the study was conducted between March and April and was based on responses from about 4,500 investors who make some or all of their investments through an adviser. The financial advisers are identified by the investors themselves, meaning changes through industry consolidation aren't always immediately reflected in the survey's results.

 
               J.D. Power and Associates 
     2009 U.S. Full Service Investor Satisfaction Study 
          Customer Satisfaction Index Ranking 
            (Based on a 1,000 point scale) 
Edward Jones:                   784 
LPL Financial Services:         773 
Charles Schwab & Co.:           771 
Raymond James:                  758 
Ameriprise Financial:           754 
UBS Financial Services:         750 
Smith Barney:                   736 
Chase Investment Services:      733 
INDUSTRY AVERAGE:               731 
Morgan Stanley:                 722 
Fidelity Investments:           721 
Wachovia Securities:            721 
Wells Fargo Investments:        708 
Merrill Lynch:                  707 
Banc of America:                700 
 

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; [e-mail]