[ By Howard Haykin ] And the Winner, Once Again, is ... Edward Jones. J.D. Power and Associates 2012 U.S. Full Service Investor Satisfaction Study finds that investor satisfaction has nearly stabilized at pre-recession levels, but satisfaction continues to decline in the most critical factors that drive overall satisfaction.  That said, the top 10 firms are:

1. Edward Jones
2. Fidelity Investment
3. Charles Schwab & Co.
4. LPL Financial
5. Raymond James
6. UBS Financial Services
7. RBC Wealth Management
8. Merrill Lynch – Bank of America
9. Ameriprise Financial
10. Morgan Stanley Smith Barney

Rounding out the final 4 are:  (11) Wells Fargo Advisors;  (12) Chase Investment Services;  (13) AXA Advisors, LLC; (14) Citigroup. Methodology of Survey. For compiling the study, now in its 10th year, J.D. Power surveyed 4,400 investors who retained an investment adviser ("IA") for at least some of their investment decisions.  Each person surveyed ranked their IA for overall investor satisfaction in 7 factors (in order of importance): (i) investment adviser; (ii) investment performance; (iii) account information; (iv) account offerings; (v) commissions and fees; (vi) website; and, (vii) problem resolution. What the Findings Reveal. Satisfaction is lower in 2012 than in 2008 with the 3 factors that are most critical to customer satisfaction - financial adviser, investment performance and commissions and fees.  Despite lower scores in 3 factors - financial adviser (854 vs. 867 in 2008), investment performance (699 vs. 737 in 2008) and commissions and fees (636 vs. 700 in 2008) - the incidence of investor contact has increased in 2012. For example, the average number of contacts from the adviser regarding portfolio/asset allocation has increased to 3.2 per year, up from 2.3 in 2008, while the average number of annual calls from the adviser regarding investment performance has increased to 3.3 this year from 2.2 in 2008. Social Media Impact. David Lo, Director of Investor Services for J.D. Power, said investor expectations are increasing - driven by transparency created by the Web and their use of social media - and that has put added pressure on investment firms.  Investment firms have to work harder to satisfy their investors - i.e., reach out to customers more often.  But those firms that do, are able to differentiate themselves, and positive sentiment on social media will help them do that." At the same time, this creates a win-win situation for investors, who have access to more information than ever before.  "Due to significant increases in the adoption and usage of social media outlets, investors have the ability to share their experiences, strategies developed with their advisor, and even fee information in a far-reaching and real-time forum," said Lo. Research conducted by J.D. Power to track social media activity finds that:

• The most common theme of discussions among investors is trust in their adviser or broker.
• Lack of trust prompts investors to search for a new investment firm.
• Potential investors use social media to seek advice from others to find a trustworthy firm or broker.
• Investors typically share advice they receive from their investment firm with others, usually with the intent of validating their financial plan.
• Investors are increasingly sensitive to fees and costs, and use social media as a means to compare their firm's fees with those charged to others who discuss the issue online.

For further details, go to:  [PR Newswire, 5/14/12].