Honesty the best policy
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.
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