Advisers turn their backs on performance
Investment performance is low on an adviser's list when it comes to selecting an investment institution, according to Assirt's 1999 Market Trends survey.
Investment performance is low on an adviser's list when it comes to selecting an investment institution, according to Assirt's 1999 Market Trends survey.
The number one criteria is an organisation’s honesty, closely followed by its financial stability. Other factors, like whether advisers consider an organisation would be around for the long-term and the quality of investment products sit in third and fourth place. Investment performance ranks fifth.
Assirt managing director Brett Sanders Director says: “While some of these attributes can be readily found amongst investment institutions, others such as good investment products, good investment performance and strong customer service differentiate the top investment institutions from the rest.”
ASSIRT also found that advisers are increasingly placing money into master funds, wrap accounts and wholesale funds — at the expense of retail funds. Wrap accounts experienced the most growth in terms of the number of advisers placing money into them. However, only six per cent of funds under advice are being placed in wrap accounts.
The increase in wrap account popularity is attributed to an increase in advisers’ understanding of the investment.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
