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
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
