HNW clients value quality over fees: Praemium

High-net-worth (HNW) Australians who receive ongoing financial advice are more confident in their investments than those managing their wealth alone, new research from Praemium and CoreData found.

The Rich Decisions research found 84% of HNW investors receiving ongoing advice are happy with their investments, compared with 64% of those without an adviser. Those receiving one-off advice recorded a 70% satisfaction rate.

Trust appears to underpin the relationship, with financial advisers and wealth managers the most trusted financial professionals among HNW investors. Some 65% reported a high level of trust in the profession, while 83% of advised investors expressed high trust in their adviser's profession competency.

Praemium chief commercial officer Denis Orrock said advice provided value beyond selecting investments or constructing portfolios.

"HNW investors are financially knowledgeable and closely involved in their wealth -they're not looking to hand over every decision," Orrock said.

"What they value is an adviser they trust, who understands their circumstances and gives them greater confidence in the choices they make."

Personalisation was the leading must-have for advised investors, nominated by 39%, followed by a clearly justified investment strategy at 34%.

Fees ranked lower, with just 14% identifying competitive fees as essential, suggesting HNW clients place greater emphasis on the relevance and quality of their advice experience.

Tax and estate planning was the most common reason for engaging an adviser, cited by 53% of investors, followed by peace of mind at 47%, access to expertise at 46% and an objective perspective at 43%.

CoreData chief executive Andrew Inwood said the findings show HNW investors were not seeking to surrender control of their finances.

"What stands out is that these investors aren't outsourcing confidence, they're supplementing it," Inwood said.

Communication remained the weakest area of satisfaction, despite 84% of advised investors being satisfied, with clients most seeking additional support around tax planning, portfolio reviews, SMSF and superannuation strategy, and preparing the next generation for inheritance.

The findings follow earlier research showing HNW investors are increasingly using AI for financial tasks but largely continued to favour human advice, with 86% expecting the adviser client relationship to remain important in an AI-enabled future.