Wealth managers in the UK are at risk of being dumped over their high charges, new survey research has shown.
Research conducted by Netwealth found that out of 765 individuals with more than £500,000 of investible assets, 42% said they would consider switching to another firm because of their current provider’s high fees.
The next most commonly-cited reasons for considering switching included poor investment returns (39%), a change of relationship manager (38%), and low quality or non-existent financial advice from their current provider (33%).
The research found that investment performance is currently the most influential factor when picking a provider, with 30% of respondents naming that their top factor. But 31% said that their ideal investment manager would be “fully digital with low fees”.
Charlotte Ransom, chief executive of Netwealth, said: “While investment performance remains a major attraction, there is growing awareness of the impact high fees can have on long-term, net-of-fee returns and, ultimately, on financial outcomes.
