SEI Quick Poll: Heart Trumps Head in Investing for Wealthy Individuals

OAKS, Pa., Feb. 14, 2011 /PRNewswire/ -- A new Quick Poll from SEI (Nasdaq: SEIC) today showed that more than two-thirds (68 percent) of high-net-worth individuals surveyed have let their emotions get in the way of making the best investment decisions. And while leading with the heart may be a good thing on Valentine's Day, research has shown that results suffer when emotions are the primary driver of investment decisions.

SEI surveyed 41 wealthy individuals with more than $5 million in investible assets. Despite the clear presence of emotion in investing, the overwhelming majority of those polled (83 percent) said the more objective factors of past experience or analysis have most influenced their investment decisions. The remaining 17 percent said instinct is the most influential factor in their investing decisions.

"Wealthy individuals are human too and their hearts can get the best of them just like anyone else," said David McLaughlin, Senior Managing Director for the SEI Wealth Network®. "We know that emotion will always be part of investing. It's our job to balance that emotion with objectivity to help our clients make the best wealth management decisions for themselves and their families."

Respondents were mixed when asked what most shaped their investing philosophy. Forty six percent said their advisor had most shaped their philosophy, 22 percent pointed to education, 20 percent said peers, and just 12 percent said their family had most shaped their investing philosophy. They were also split on how to measure success. Just over half (54 percent) said personal goal achievement is the most important measure of investing success, while 46 percent said rate of return is most important to them.

There was little disagreement on where to get the most trusted investing information. The overwhelming majority of respondents (83 percent) consider industry professionals to be the most trusted source of investing information, while a small minority (17 percent) pointed to the press as the most trusted information source.

For further information about the SEI Wealth Network's poll, please email [email protected].

About SEI Wealth Network®

SEI Wealth Network is a business unit of SEI that provides private wealth management services.  The SEI Wealth Network provides clarity into the complex issues faced by individuals and families so they can make better decisions for themselves, their families, and their communities.  In September 2009, SEI received the Wealth Management Innovator of the Year award at the Spears Wealth Management Awards.  For more information about the SEI Wealth Network, visit www.seic.com/WN.

About SEI

SEI (NASDAQ: SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of December 31, 2010, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $416 billion in mutual fund and pooled assets and manages $172 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations, from numerous offices worldwide. For more information, visit http://www.seic.com.

SOURCE SEI