Although wealth managers have serious concerns about fee compression, a Cerulli report says that it's a primary determinant in choosing a provider for relatively few investors.
In its report U.S. Retail Investor Advice Relationships 2018: Optimizing Engagement, Cerulli says that client behavior is less tied to fees than advisors might think.
Although investors "may not hold high regard for the financial sector overall," says the report, they are pretty happy with their own providers and advisors — even though they are broadly aware of the types and amounts of fees associated with their investing relationships, the report points out.
In fact, relatively few investors, says the report, "cite fee levels as their primary determinant in provider selection." And even though they are becoming more aware of fees, they're still pretty well satisfied with the status quo.
