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Three Of Five Rich Australians Have No Wealth Manager - Study

Vanessa Doctor

30 January 2011

Affluent Australians are more likely to deal with an experienced wealth manager than with relatively new players, new research by Datamonitor reveals.

Responses from 300 Australian consumers with at least A$50,000 in investable assets showed that over 80 per cent would buy investment products only from a well-known company.

"The big players should be able to pick up new clients as any foreign players looking to expand into Australia will have to invest a great deal of time and money in building up their brand profile," Andrew Haslip, senior analyst at Datamonitor, said in a press release.

Haslip was quick to note, however, that the Australian market still presents a vast opportunity for newcomers because of the large pool of untapped potential clients. The study says that three out of five wealthy individuals still manage their own investments, particularly those with A$50,000 to $250,000 in liquid assets. Among those with A$100,000 to A$249,999, cash remains a popular choice.

"Unlike other developed markets, where more investors would already have a tight relationship with a broker or independent financial advisor and need to be won from a competitor, players in the Australian market simply need to win over new clients by making the case for consulting investment experts," Haslip added.

"Australians rely first and foremost on their own judgment, meaning many have not formed relationships with wealth managers."

The majority of wealth and wealthy individuals in Australia are concentrated in the eastern states of New South Wales and Victoria.