Fundies missing out on HNW fees
Fund managers are feeling the pinch as wealthy investors opt for simple low-fee products, according to Datamonitor.
The research supported the prevalent view that investors remained conservative throughout 2010, placing more of their wealth in savings accounts, term deposits and other cash products. Datamonitor stated that this behaviour was most pronounced among clients with $100,000 to $249,999 in liquid assets. Almost half of the respondents in this asset band added to or took out new cash products in 2010, hitting the fee income of wealth managers, it stated.
The research also revealed that wealthy individuals in Australia tended to plan their own investment strategies and three out of five of those in the $50,000 to $250,000 liquid assets band still managed their own investments.
Datamonitor also stated that 80 per cent of investors in that asset band would only buy from an established player, which presented an opportunity for well-known wealth managers.
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