Denis Orrock
High-net-worth Australians who receive financial advice are substantially more confident in their investments than those managing their wealth without an adviser, according to new research released by Praemium and CoreData.
The Rich Decisions research found 84% of high-net-worth (HNW) investors receiving ongoing advice are happy with their investments, compared with 64% of those who are not advised. Investors receiving one-off advice sit between the two groups, with 70% reporting that they are happy with their investments.
Trust appears central to that difference. Financial advisers and wealth managers rank as the most trusted financial professionals among HNW investors, with 65% expressing a high level of trust. Among advised investors, 83% have high trust in their adviser’s professional competency, while 77% report high overall trust.
Praemium Chief Commercial Officer, Denis Orrock said the results show that advice provides value beyond portfolio construction and investment selection.
“HNW investors are financially knowledgeable and closely involved in their wealth — they’re not looking to hand over every decision. What they value is an adviser they trust, who understands their circumstances and gives them greater confidence in the choices they make.”
HNW clients prioritise relevance over price
A genuinely personalised approach is the leading “must-have” for advised HNW investors, selected by 39%. This is closely followed by a clear investment strategy with strong justification for decisions at 38%, and strong investment performance at 34%.
Strong communication is the most frequently nominated “nice-to-have”, cited by 35%, while 28% regard it as essential. Easy-to-use reporting or a digital portal is considered a must-have by 30% of advised investors. Competitive fees rank lower, identified as essential by 14%.
The findings suggest that HNW clients assess value through the quality and relevance of the advice experience, rather than price alone.
Reasons for engaging an adviser reinforce that point. Tax and estate planning is the most common reason HNW investors seek advice, cited by 53%, followed by peace of mind and reassurance at 47%, access to expertise they do not possess at 46%, and an objective perspective on their decisions at 43%.
“What stands out is that these investors aren’t outsourcing confidence, they’re supplementing it. Tax and estate planning top the list of reasons for seeking advice at 53%, but peace of mind, access to expertise and an objective second opinion all sit close behind. This is a segment that knows its own mind and wants an adviser who adds to it, with real technical depth where it counts, someone to test their thinking, and a strategy explained clearly enough to stay engaged with. The advisers who grasp that distinction are the ones who keep these clients,” CoreData CEO Andrew Inwood said.
Trust is sustained through the client experience
The research found high satisfaction across most elements of advice, including fees and value for money, progress towards financial goals, investment performance and personalisation. Communication recorded the lowest satisfaction result, although 84% of advised investors remained satisfied with it.
Clients seeking more adviser support nominated tax planning and minimisation strategies as their biggest need at 40%, followed by more regular or in-depth portfolio reviews at 33%, SMSF and superannuation strategy at 31%, and preparing the next generation for inheritance at 30%.
The qualitative research also found that clients associated adviser value with being accessible, proactive and transparent, particularly during periods of market uncertainty. Poor communication, perceived neglect and a lack of honesty about performance could quickly undermine an otherwise established relationship.
“Communication is where satisfaction sits lowest and where clients most want more — even among those who are otherwise very happy. Technical competency establishes credibility, but trust is sustained or lost through how an adviser communicates, especially when markets are volatile. The advisers who win this segment will be the ones who stay accessible, proactive and transparent” Orrock said.
