Australian investors loyal to wealth managers - until they're not

Australian investors show a greater willingness to stay with their wealth provider than their global counterparts, according to the 2025 EY Global Wealth Research Report.

However, despite this relative loyalty, more than one in five investors still plan to shift over half of their portfolio away from their primary wealth manager within the next three years.

The report, which surveyed approximately 3600 wealth clients worldwide - mass affluent to ultra-high-net-worth individuals (UHNWI) - said these expected portfolio changes underscore the continued need for wealth managers to continue to evolve their offerings.

While investment performance is the primary factor investors identified when selecting their primary wealth manager, the report noted it "isn't a realistic differentiating factor."

Instead, firms should focus on inhibiting and taking advantage of switching decisions influenced by behavioural factors.

Investment performance aside, the report said differentiators such as brand reputation, digital tools, access to specialists, and value-added advice are "equally relevant."

"... they're all areas in which wealth managers can sharpen their value propositions through exceptional advice and client management," the report said.

The report also noted increased volatility in global markets will heighten the importance of engagement and carefully tailored advice from advisers to retain trusted relationships.

It said, "advisers should be mindful" that 56% of Gen X investors and 47% of millennials indicate volatile market conditions prompt them to take greater control of their portfolios.

EY regional wealth and asset management leader Rita Da Silva said the survey suggests that Australian investors continue to value strong relationships with their wealth managers.

"Locally, our robust regulatory guardrails and the work the sector has done to build trust following the Financial Services Royal Commission has gone a long way to creating an environment where investors are less likely to be considering a shift in primary providers," she said.

"However, with client expectations continuing to evolve in the face of greater market volatility, and the potential impacts of the Quality of Advice Review on the local industry yet to fully play out, it's essential that wealth managers keep pace with these changes..."

Notably, full-service banks are the most common primary adviser for Australian investors (23%), followed by private banks (19%). Private bank usage in Australia is higher than both global and Asia Pacific levels, where it stands at 13% each.