The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Earning Trust Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, June 06, 2002

Earning Trust

by: Tony Pennino

Enron. Global Crossing. Tyco. The Merrill Lynch settlement. The Arthur Andersen trial. Investors' faith in the financial services industry has been rocked in recent months from these and other similar scandals. Mutual fund firms and other companies in the investment community have lost the trust of their clients. And firms are beginning to respond to those sentiments. Case in point: John Hancock.

Over the next few days, John Hancock is sending out letters to about 10,000 of its financial advisors. The message: begin to win back the trust of your clients.

The letter was written by Keith Hartstein, head of sales and marketing at the firm. His message to the reps in the field is that people are nervous -- not just about investing, but, in this post-September 11 world, about life itself. "Our job - together - is to try to restore the public's confidence and faith. We believe that the best way to accomplish this task is by communicating with your clients on a frequent basis. It's all about trust, and trust begins with communication," Hartstein writes.

In the missive, Hartstein provides some important statistics for the financial advisors:
  • less than 20% of the advisors contacted clients right after September 11,
  • among advisors failing to contact their client, 33% of clients are seeking a new advisor,
  • investors who were contacted immediately after September 11 do not indicate a great willingness to change advisors,
  • and clients who are contacted by their advisors in turbulent times tend to send in more money.
For the last, the executive cites October 1987 when clients who were contacted sent advisors an average of $260,000 in new assets.

Hancock has prepared letters for reps to give to their clients. The firm also has information to help reps explain bear markets and periods of volatility. It has also alerted its wholesalers to be available to help advisors.

Hancock makes it clear that trust is a key element to success in the investment business. And it is starting to reclaim that trust through communication between clients and the advisors in the field. Using the reps to make the case will no doubt be a key element in Hancock's tactics. One-on-one communication with a person clients' know will no doubt make a lasting impression over letters mailed or e-mailed to clients.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use