The continued fragmentation of the advice industry has led to further proliferation of independent research consultants and bespoke implementation structures at a time when the bar for quality and timeliness of research from advisers is being raised. This panel looks at the evolution of research and asks what are the appropriate structures, governance measures and qualifications needed within the research industry to advance advice outcomes.
Michael Karagianis, senior consultant, Jana Investment Management
Ian Knox, director, Lonsec
Tim Murphy, director of manager research, Morningstar
MODERATOR: Colin Tate, chief executive, Conexus Financial
- The booming investment research industry is likely to contract in three to five years as the market for managed accounts steadies and weaker industry participants fall away.
- The rise of managed accounts has fostered a growth period for independent research consultants.
- The continued proliferation of these providers, the panel found, shouldn’t be taken for granted. “Certainly the growth of managed accounts has increased the supply of investment management options,” Morningstar’s Murphy said. “It’s hard to envisage that in three or five years time there will be as many.”
- There’s likely to be “a handful” of independent researcher success stories, Murphy continued, and another cohort that find the going more challenging.
- The advice market is currently spoilt for choice when it comes to research, Lonsec’s Ian Knox reckons. He took a slightly more bullish view on the industry’s prospects, but agreed that there will be an eventual rationalisation in the investment research space.