Best Investment Firms Ranked by Advisors: J.D. Power 2014 Satisfaction Study

J.D. Power & Associates says that the overall level of satisfaction among both employee and independent advisors “remains relatively high,” according to its 2014 survey. However, large numbers of reps do not understand their compensation, and many also feel that the latest comp packages are unfavorable to them.

"Being paid competitively is important, but elements related to issues like clarity and consistency are also significant,” explained Michael Foy, director of J.D. Power & Associates’ wealth management practice in New York, in an interview. “A substantial number of advisors say they do not fully understand their compensation packages – 40%. Clearly that is a problem across both channels.”

The latest satisfaction study reflects the views of more than 3,900 advisors. It was redesigned from the prior year, with responses collected between January and April.

“There were a number of changes in compensation, particularly on the employee-advisor side,” Foy said. “About half of these advisors said their plans changed in the past year, with four out of 10 saying the changes were negative.”

In the independent channel, only about a third of reps experienced compensation changes, with about one in four having negative views of the new comp plans.

Despite these compensation issues, overall satisfaction among employee advisors increased to 721 (on a 1,000-point scale) from 695 a year ago, and satisfaction among independent advisors fell to 778 from 794.  

Also, 87% of employee reps and 93% of independent advisors say they “definitely will” or “probably will” remain at their current firm for the next one or two years, the survey finds.

Still, cautions Foy, the survey results should not make investment firms complacent. 

When financial markets are doing well, investment firms might have “a false sense of security for their future success,” he says. “As markets turn around, it’s likely that we will see some erosion in satisfaction.”

As a result, firms should do a better job of communicating with their advisors about the firm’s strategic vision, culture and compensation. “It’s crucial for such communication to occur, so that advisors buy into strategy, understand the vision and compensation, and are able to use tools of support like technology and marketing across the board.”

Keep reading to see how advisors assessed each of the major investment firms in the employee and independent channel:

Best Investment Firms for Advisor Satisfaction: Employee Advisors

Best Investment Firms for Advisor Satisfaction: Independent Advisors

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Boost from iPhone 6 Will Push Apple Stock to Record High

The iPhone 6, the next major upgrade to Apple Inc.'s (Nasdaq: AAPL) flagship product, isn't due out until September.

But we've gleaned enough leaked information to project that it will bring in enough revenue and profit to get Apple stock back to its all-time high - $100.72 - and beyond.

So what do we know about the iPhone 6?

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Other than its likely release date, the consensus is that the iPhone 6 will come in not one but two larger display sizes - 4.7 inches and 5.5 inches - than the current top-of-the-line iPhone 5S, which has a 4-inch display.

Apple misjudged the popularity of larger-screen smartphones, but the strong sales of such phones based on Google Inc.'s (Nasdaq: GOOG, GOOGL) Android operating system hints at significant pent-up demand for a larger iPhone - and not just in the United States.

"This is a smart move for them," said Money Morning Defense & Tech Specialist Michael Robinson. "The emerging markets, particularly China, they like a larger screen. Forty percent of the smartphones sold in China recently were five inches or larger. So this larger iPhone really helps segment them, and it comes after the China Mobile (NYSE ADR: CHL) deal. I think this is going to be very successful."

We also know that the iPhone 6 will run Apple's latest mobile operating system, iOS 8, which was discussed in detail at the company's Worldwide Developers Conference (WWDC) earlier this month.

You can be sure that the iPhone 6 will be designed to exploit such iOS 8 features as the HealthKit app, which helps users track health and fitness, and iBeacon, which sends shopping information to a user's phone based on where they're standing inside a store.

And of course there should be the usual upgrades to the cameras, battery life, central processor, etc., that will make the iPhone 6 a very compelling buy for both customers new to the platform as well as those wishing to upgrade.

And there are plenty of current iPhone owners ripe for an upgrade. According to Morgan Stanley (NYSE: MS), about half of all iPhone owners in the United States are still using an iPhone 4 or iPhone 4S.

A survey in April by research firm ChangeWave showed that 40% of early adopters were at least "somewhat likely" to buy an iPhone 6 - "the highest level of demand for an unannounced Apple model in a ChangeWave survey," Andy Golub of 451 Research told Fortune.

Now let's take a look at how the sales success of the iPhone 6 that will affect AAPL stock...

How the iPhone 6 Will Turbocharge Apple Stock

In the weeks since Apple outlined the new features of iOS 8, and more details about the iPhone 6 have been leaked, analysts have been falling over themselves in a mad scramble to jack up their price targets on AAPL stock.

Since the 7-to-1 Apple stock split took effect June 9, the shares have traded in the low $90s, near or below the target prices of many analysts. A summary of the action over the past few weeks:

Goldman Sachs: $102.86 (made just prior to WWDC) Needham: $97 RBC Capital Markets: $100 Cowen & Company: $102 JPMorgan Chase: $108

Virtually every analyst cited an expectation for huge iPhone 6 sales as a major reason for their AAPL price target increases, most of which exceed the all-time high.

Cowen analyst Timothy Arcuri said in a research note that Apple could sell as many as 100 million iPhone 6 models in the December quarter. Apple sold 44 million iPhones in its most recent quarter.

Charlie Wolf of Needham sees the iPhone 6 adding $10.29 to the Apple stock price over the next year. Mind you, prior to the split that would have been a hefty $72.

Robinson agrees that the iPhone 6 will deliver significant upside to AAPL stock.

"I think the iPhone 6 could add 8% to 12% to the Apple stock price," he said.

Robinson also noted that while the iPhone dominates Apple's earnings, the company's dividend and share buyback program, as well as rising sales of other products, including new products such as the iWatch, will also help propel AAPL higher.

Even a conservative scenario has Apple stock at least edging very close to its all-time high.

"Apple stock is up 20% since the most recent earnings announcement. So, even if the iPhone 6 release gives us only half as much of a catalyst, we're still talking gains of around 10%," Robinson said.

Are you excited about the prospects for the iPhone 6? Do you agree that it will provide the fuel to drive the Apple stock price to a new all-time high? Tell us on Twitter @moneymorning or Facebook.

UP NEXT: When Michael Robinson looks at Apple stock, he sees much more than a maker of the iPhone and other tech gadgets. When he watched the events unfold at WWDC, he saw something much bigger. Michael says these initiatives will drive AAPL up by 50% or more...

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