Just over half of all UK millionaires make their own investment decisions and only one in ten rely...
Just over half of all UK millionaires make their own investment decisions and only one in ten rely mainly on a financial adviser. The remainder, just over a third, said they relied equally on a financial adviser and their own judgement.
The findings come from Tulip Financial Research's fourth Wealth Management Report, 'The Tulip Investment Adviser & Fund Manager Selection Report'.
Millionaires' most important source of advice and information in making investment decisions was found to be the financial pages of newspapers and specialist financial publications. Only 8% used a private or retail bank for advice.
The research also unveiled the five top fund managers used by millionaires. Jupiter came out the clear winner with 20% of those questioned investing in funds managed by them. The following places were much tighter; Perpetual had 13%, Invesco and M&G were tied at 12% and Legal & General took fifth spot with 11%.
Notably, Fidelity is missing from the honour list. Although the investment house is the most used fund manager by Wealth Owners overall, it was only ranked tenth amongst millionaires.
John Clemens. Managing Partner of Tulip Financial Research, commented: "Our latest research shows that many wealthy investors trust their own investment judgement a lot more than that of their advisers - and this applies not just to the wealthy, to Wealth Owners, but also to the very wealthy, the millionaires. And how do they choose where to invest? They largely depend on journalists, on the financial columns of newspapers, backed up by the specialist financial press and online services."
"Tulip also found strong evidence that advertising plays a very important role indeed in fund manager and investment choice. There is a close statistical correlation between fund manager choice and levels of advertising expenditure. Funds are a consumer product like any other: and fund selection appears to be geared more to ad content and weight rather than to information based assessments".
The research was based on a survey of 504 British Wealth Owners, who own on average £300,000 in liquid financial assets. One in six of these are millionaires, with average liquid assets of over £1,000,000, not including property, pension fund and other illiquid assets.
The report also includes the sources of investment advice and/or management used by the wealthy, the criteria used to select investment advisers and Wealth Owners' satisfaction with their investment advisers.
A selection of Tulip reports are available from www.mintel.com
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