Attention Advisors: Your High-Net-Worth Clients Are Not As Dissatisfied As You Think.

Business Editors

HARTFORD, Conn.--(BUSINESS WIRE)--June 14, 2002

Today's advisors are not in sync with their high-net-worth clients' financial and emotional needs. Contrary to advisors' beliefs, the bear market and the events of September 11 have created an environment where the wealthy are asking for more professional financial advice, better communication with their advisor, and tactics to help build a relationship of long-term trust.

According to the Phoenix Wealth Management Survey of the High Net Worth and their Advisors, commissioned by The Phoenix Companies, Inc. (NYSE:PNX), and conducted by Harris InteractiveSM, 31 percent of financial advisors believe their clients are extremely/very dissatisfied with them, while in reality only 9 percent of the wealthy with a primary financial advisor report this level of dissatisfaction. In fact, an increasing number of clients are seeking professional advice when making financial decisions. However, those who were dissatisfied with their primary advisor were clear about the reasons why - 40 percent reported their advisor was not proactive in maintaining contact and an additional 11 percent stated they were difficult to get a hold of.

"Financial advisors need to heed the clarion call and come out of hiding. Today's wealthy are feeling more vulnerable and confused, and whether advisors believe it or not, clients value their counsel now more than ever," said Stephen Gresham, executive vice president and chief sales and marketing officer, Phoenix Investment Partners. "The high net worth are also looking for tools such as formal financial plans. This is clearly an indicator that they want a long-term strategy that goes beyond just product," he added.

"We believe this survey information provides us with a timely and unique perspective on the advisor-client relationship. It is this type of market intelligence that we can use to support advisors as they grow their business. Given the market environment and competitive landscape, advisors have to be solution providers, not product pushers," said Walter H. Zultowski, senior vice president, marketing and market research of Phoenix.

Top Line Summary - The Advisor-Client Relationship

Advisors Aren't to Blame for the Effects of the Bear Market

Advisors feel their clients are more dissatisfied with them than they really are. In addition, there is a disconnect on the cause of that dissatisfaction.

-- Seventy-five percent of advisors feel it is extremely/very important to
offer a formal written plan and another 87 percent claim to currently offer a
formal written plan that can be tailored to each client's needs.

-- Thirty-five percent of the wealthy without a formal written plan report not
having one because they don't believe they need one, and another 38 percent do
not have one because they are unsure if they would benefit from having one.

-- Twenty-seven percent of the wealthy without formal written plans believe
they would benefit from one, and among those with one in place, 53 percent
report already achieving their goal of being able to assume a comfortable
standard of living during retirement.

The High Net Worth Are Less Confident

The wealthy feel less knowledgeable about financial issues and the stock market in particular. They are also confused about the best way to invest their money, and in fact, they are currently less likely to reallocate investments, given the market environment. The findings include:

-- Seventy-five percent of advisors feel it is extremely/very important to
offer a formal written plan and another 87 percent claim to currently offer a
formal written plan that can be tailored to each client's needs.

-- Thirty-five percent of the wealthy without a formal written plan report not
having one because they don't believe they need one, and another 38 percent do
not have one because they are unsure if they would benefit from having one.

-- Twenty-seven percent of the wealthy without formal written plans believe
they would benefit from one, and among those with one in place, 53 percent
report already achieving their goal of being able to assume a comfortable
standard of living during retirement.

The High Net Worth Want Advice

The wealthy are now more likely to seek and to follow the advice they receive from their primary financial advisor.

-- Seventy-five percent of advisors feel it is extremely/very important to
offer a formal written plan and another 87 percent claim to currently offer a
formal written plan that can be tailored to each client's needs.

-- Thirty-five percent of the wealthy without a formal written plan report not
having one because they don't believe they need one, and another 38 percent do
not have one because they are unsure if they would benefit from having one.

-- Twenty-seven percent of the wealthy without formal written plans believe
they would benefit from one, and among those with one in place, 53 percent
report already achieving their goal of being able to assume a comfortable
standard of living during retirement.

Communication Is Key

A majority of advisors claim they've stepped up communication with their clients because of market instability, but the high net worth don't think so. And, while the phone is still the top choice for communication, today's rapid-pace environment is prompting high-net-worth clients to ask advisors to move forward and embrace the Internet and email as well.

-- Seventy-five percent of advisors feel it is extremely/very important to
offer a formal written plan and another 87 percent claim to currently offer a
formal written plan that can be tailored to each client's needs.

-- Thirty-five percent of the wealthy without a formal written plan report not
having one because they don't believe they need one, and another 38 percent do
not have one because they are unsure if they would benefit from having one.

-- Twenty-seven percent of the wealthy without formal written plans believe
they would benefit from one, and among those with one in place, 53 percent
report already achieving their goal of being able to assume a comfortable
standard of living during retirement.

The Value of a Formal Written Plan

Advisors know the benefit of a formal written plan and the key role it plays in investment success. However, there appears to be a gap in how well they communicate the benefits of formal planning.

-- Seventy-five percent of advisors feel it is extremely/very important to
offer a formal written plan and another 87 percent claim to currently offer a
formal written plan that can be tailored to each client's needs.

-- Thirty-five percent of the wealthy without a formal written plan report not
having one because they don't believe they need one, and another 38 percent do
not have one because they are unsure if they would benefit from having one.

-- Twenty-seven percent of the wealthy without formal written plans believe
they would benefit from one, and among those with one in place, 53 percent
report already achieving their goal of being able to assume a comfortable
standard of living during retirement.

The annual Phoenix Wealth Management Survey of the High Net Worth conducted in March 2002 by Harris Interactive, consisted of 1,649 online interviews with adults who were financial decision makers for households with a net worth of $1 million or more, minus any debt and excluding primary residence. Respondents were recruited from the Harris Poll OnlineSM panel. Phoenix also conducted a simultaneous survey of financial advisors to the high net worth, contacting by phone 102 financial advisors. To ensure comparable results to interviews among the high net worth, advisors were screened to select those with a majority of high-net-worth clients, who manage $50 million worth of assets or more, and who have 10 or more years of experience.

The Phoenix Companies, Inc. (NYSE:PNX) is a leading provider of wealth management products and services to individuals and institutions. Through a variety of advisors and financial services firms, Phoenix helps the affluent and high net worth accumulate, preserve and transfer their wealth with an innovative portfolio of life insurance, annuity and investment management products and services. With a history dating to 1851, The Phoenix Companies, Inc., has two principal operating subsidiaries, Phoenix Life Insurance Company and Phoenix Investment Partners, Ltd., and offers trust services through another subsidiary, Phoenix National Trust Company. Phoenix has corporate offices in Hartford, Conn. For more information on Phoenix, visit www.phoenixwm.com.

Harris InteractiveSM (www.harrisinteractive.com) is a worldwide market research and consulting firm best known for The Harris Poll (R)and its pioneering use of the Internet to conduct scientifically accurate market research. Harris Interactive combines the power of unique methodologies and technology with international expertise in predictive, custom and strategic research. Headquartered in Rochester, NY, with offices across the United States, in the United Kingdom, in Japan and a global network of local market and opinion research firms, the Company conducts international research with fluency in multiple languages. EOE M/F/D/V