Investment security tops
Investment performance is still the most important consideration for clients de-ciding which product to invest in, a funds management and consumers study has found.
Investment performance is still the most important consideration for clients de-ciding which product to invest in, a funds management and consumers study has found.
The study, commissioned by Australian Unity, ranked the security of the invest-ment, 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 author, Melbourne-based researcher 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 communica-tions.
Two of the most serious post-sale negatives from respondents were problem solv-ing and value for money.
"Such negative results are likely to impact on some suppliers' market opportuni-ties 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 author says.
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.
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