Investment security tops
Investment performance is still the most important consideration for clients deciding which product to invest in, a funds management and consumers study has found.
The study, commissioned by Australian Unity, ranked the security of the investment, confidentiality, fund manager's strength and the professionalism of the adviser as the four top considerations.
Investors taking part in the national study criticised contractual agreements. The study's authors, Melbourne based researchers WA Taylor and Associates, accept this is a complex issue, but "represents considerable influence on the buying decisions".
"While more people are turning to funds management products, many hesitate to commit themselves because they don't understand the contractual agreement they must sign," the study says.
The five most important post-sale functions investors sought from fund managers were: value for money; accuracy of redemptions; problem-solving by the adviser; problem-solving by the fund manager; and accuracy of administration communications.
Two of the most serious post-sale negatives from respondents were problem solving and value for money.
"Such negative results are likely to impact on some suppliers' market opportunities when potential buyers of funds management products seek advice and research the market for competitive products and services available," the study says.
Perceptions of value differ from each investor. This becomes a problem when the marketing of a product links value with performance, the study's authors add.
The study also ranked Australian Unity's performance as a fund manager against other managers named by investors surveyed. The others included AMP, Mercantile Mutual and BT.
The study found Australian Unity outperformed its industry rivals in areas such as redemptions, problem-solving and call centre service.
Recommended for you
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
