Advice clients don't want managed fundsBY MARK SMITH | FRIDAY, 20 JUN 2014 12:25PMAFA Adviser of the Year Jenny Brown has said that clients are simply not interested in investing in managed funds. Related News |
Editor's Choice
Early release of super scammers cop prison time
Three people will go to prison after pleading guilty to defrauding the COVID-19 early release of superannuation scheme for $103,500.
Super funds slash external mandates by 54%
The number of investment managers winning institutional mandates has tanked 54% in less than two years as superannuation funds ramp up the in-house management of assets, Rainmaker Information research reveals.
ASIC tells super funds to 'step it up'
ASIC commissioner Simone Constant delivered a stern warning to super fund trustees.
Brookfield bids for majority stake in Neoen
Brookfield and its institutional partners have lobbed a bid to acquire a 53% majority stake in French renewable energy company Neoen.
Further Reading
Sponsored by | Know the facts about lifetime annuitiesSaving for a happy retirement is Australia's #1 financial goal. Learn how LifeIncome can deliver more income, certainty, & choice. |
Products
Featured Profile
Jason Huljich
JOINT CHIEF EXECUTIVE OFFICER
CENTURIA CAPITAL LIMITED
CENTURIA CAPITAL LIMITED
A single decision can change your life, and that's exactly what Centuria Capital joint chief executive Jason Huljich learned when he came to Australia in the 1990s. Eliza Bavin writes.
I think Jenny Brown's comments relate more to her bias in terms of investment approach rather than client preference - we are in the ADVICE not PERMISSION profession - and if our advice is a certain investment approach clients will accept it or go elsewhere.
Our clients for example are not interested in direct investments as they don't offer access to the broad range of absolute strategies that managed funds offer (this is due to our investment approach - not due to their investment preferences). Minimizing costs is important - but not to the detriment of returns - ie. cheap is not always better.
I hope that Jenny Brown's selection of direct investments is as good as the section of investments made by investment managers. Somehow I doubt that an adviser will consistently select stocks better than a professional manager - especially one who does not invest in the index and is a true active (rather than enhanced index) manager.
Good luck.