MOST INVESTORS NOT WILLING TO PAY FOR ADVICE
A majority of investors are not willing to pay upfront fees for investment advice and also do not think fund mangers should charge performance fees on top of normal annual management charges, according to a barometer of investor sentiment from financial marketing specialists dianomi™.
From a panel of over 1,750 UK investors, 61% responded that they would not be willing to pay upfront fees for investment advice to a financial adviser rather than an annual commission fee on the fund investments they hold. However, almost half (46%) of the top 5% most affluent investors would be willing to pay.
The research also investigated whether investors would be happy to pay performance fees on funds under management. 75% of investors responded that fund managers should not charge performance fees on top of normal annual management charges. 66% of investors also responded that they do not invest in any funds with performance fees, and when asked if performance fees incentivise fund managers to perform better, 44% of investors responded that they did not.
dianomi also investigated the preferences of UK investors when it comes to fund managers. When asked “How confident would you be of the following fund management groups managing your money successfully?”, investors appeared to have the most confidence in Invesco Perpetual, followed by Fidelity, Jupiter, Aberdeen and JP Morgan respectively. To download the survey and get a full list of the fund managers rated go to: http://www.dianomi.com/surveys
Cabell de Marcellus, co-founder of dianomi, comments, “With a majority of investors unwilling to pay upfront fees for advice and the coming changes envisioned as part of the Retail Distribution Review (RDR), it looks like professional advice will be primarily afforded in the future by the wealthy who appear more open to the idea of paying upfront.”
dianomi is setting new standards in customer acquisition services for the financial sector and its mass affluent audience. dianomi’s client list includes blue chip financial services brands including St. James’s Place, Fidelity, CMC Markets, JP Morgan, Hargreaves Lansdown, Aberdeen Asset Management, Investec and many more.
Notes to editors
Methodology: The survey was conducted by dianomi directly with 1,767 UK investors participating in July 2011
The dianomi™ marketing platform enables global brands in the finance and automotive sectors to acquire new customers by targeting the mass affluent across an unparalleled network of white-label partnerships with premium publishers such as The Guardian, Reuters, Yahoo, MSN etc. 30% of the leads dianomi provides its clients come from the UK’s 10% most affluent.
In order to maximize ROI, dianomi’s level2insight™ provides advertisers campaign optimisation, sector benchmarking, in-depth demographics and customer surveys.
For more information, please contact:
By Julian Barkes at dianomi: [email protected] tel: 020 7802 5530