Morningstar backs wealth managers

Morningstar backs wealth managers

Morningstar has delivered a glowing assessment of the wealth management industry, with AMP's "dominant, vertically-integrated business model" making it the pick of the bunch.


The research house's Equity and Credit Markets Outlook found that Australian wealth managers continue to benefit from strong investment markets and investment flow.

"Favourable demographic trends, such as increasing life expectancy, later retirement ages and population growth, along with an increased focus on building adequate retirement savings, support our thesis," said the report.

"While earnings are volatile given their exposure to investment markets and high operating leverage, long-term industry fundamentals remain attractive," it said.

The risks for wealth managers include the potential for "adverse regulatory outcomes in the areas of superannuation, financial advice and taxation", said the report – as well as the rise of low-cost investment options such as ETFs and 'robo advice'.

"Our preferred wealth management exposures are AMP, which boasts a dominant, vertically-integrated business model, and pure-play asset managers with international asset management expertise, including Magellan Financial Group and Platinum Asset Management," Morningstar said.

 

Related Articles

 

Morningstar backs wealth managers
investordaily image
ID logo
promoted stories

Appointments

Stephen Glenfield

FASEA appoints new chief executive

Reporter

David Murray

David Murray commences new role as AMP chairman

Reporter

Adrian Went

ANZ names new group treasurer

Reporter

Analysis

investordaily image

Super shouldn’t be a lottery

Tim Stewart

investordaily image

Can infrastructure equities cope with rising rates?

James Lydotes

James Swanson

Is this as good as it gets?

James Swanson