What Investors Think, and What Matters to them in 2018: Key Survey Findings

To ensure that our service continues to deliver what clients want, Netwealth recently conducted a survey in conjunction with YouGov to find out what are the key issues that matter to investors. Here is an overview of our findings.

50% are not aware about all the fees they pay

Half of all investors are not sure about all the fees they are being charged by their wealth manager, the research shows. 37% of those surveyed only know “most” or “some” of the fees and charges they are paying for wealth management services, while 13% are unclear about any of the fees and charges they are paying.

72% say that transparency matters the most

The research also shows that investors no longer tolerate hidden fees, with 72% stating that “transparency around how fees are charged” is now the most important factor when choosing a wealth manager, followed by personal trust (67%) and good investment performance (60%).

Other important findings from the research include:

• Only 32% of investors surveyed feel they don’t need financial advice – 68% are not confident enough to invest without seeking some form of guidance
• 56% see hassle-free access to information about their investments as the top benefit of technology. This would enable them to see how their investments are performing at any time
• Only 35% of investors have immediate access to information on the fees they are paying, while 44% can only find it out through their annual (25%), quarterly (14%) or monthly statements (5%)
• 84% of investors agree that fees matter to them and they don’t like to overpay, but 31% said they are happy with their current provider even though they charge them more than they would expect.

In a recent report* the FCA recommended, “Consumers should now see the full costs and charges, expressed as a single fee, for most transactions in investment products, and on an ongoing basis.”

Our research indicates that traditional wealth managers are taking advantage of their clients’ trust. They make it extremely difficult for clients to see how their portfolios are performing and to understand fully both the level and the impact of fees that can have such huge negative consequences on their long-term savings.

Technology is a powerful enhancer of modern wealth management services. It enables clients of firms such as Netwealth to interact with their portfolios at any time, and to be fully aware of performance and how much they are paying in fees.

However, technology is not a substitute for the trust that comes with experienced people giving personal advice and making investment decisions on our clients’ behalf. At Netwealth, we believe that pairing technology with human advice is the most powerful combination of all.

Please remember that when investing your capital is at risk.

Research Methodology
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,014 adults, of which 798 had £50k+ in investable assets, and were defined as an 'investor'. Fieldwork was undertaken between 24th - 27th May 2018. The survey was carried out online.

* FCA Occasional Paper no. 32: “Now you see it: drawing attention to charges in the asset management industry”. April 2018.