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    Understanding The Value of Wealth Management Firms for Investors

    The firms that are traditionally associated with wealth management are some of the largest financial institutions in the world. A quick google search on wealth management firms will come up with a list. This list includes UBS, Bank of America, Wells Fargo, Credit Suisse, JP Morgan Chase, Morgan Stanley, HSBC and Deutsche Bank[1] to name a few.

    Do these names sound familiar? They should, as these organisations along with others effectively caused the crash of the global economy in and in the years leading up to 2008. 

    [1] https://www.thebalancecareers.com/top-wealth-management-firms-1287460


    Wealth management is defined by the RBA to include various forms of funds management (superannuation, managed funds and life insurance) and financial advisory services[1]. This industry is charged with controlling large parts of people’s finances outside – sometimes including – the family home.

    It can come in the form of financial planners through to fund managers, insurance agents and of course superannuation. Anyone who has worked will have superannuation in Australia. It has long been touted as one of the greatest retirement systems in the world, as it removes the pressure from governments to support people in their old age to the level they would have once had to do so. 



    An example of this was in 2008 when wealth management firms become greedy and started creating financial instruments and markets to profiteer, not to mention engage in proprietary trading often on positions that are averse to that of their investors, this is where the industry can come unstuck. 

    What do wealth management firms do in Australia?

    In Australia with such a fragmented market, wealth management firms undertake a broad range of activities for their clients and their own interests. From financial advice, asset allocation through to asset management, there are many areas financial management firms cover.


    Wealth management firms provide services to meet the individual investment needs of their clients through investments, planning, advice and services across a wide range of mediums. These can include SMSF or self-managed super funds, share trading platforms as well as a wide range of education and advisory services all geared to increase the personal wealth.

    There are specific tiers of wealth management firms from entry-level financial planners that can help people plan for retirement or set up a personal financial plan, run SMSF accounts and provide guidance to ‘mum & dad investors’, through to high-end asset and fund managers that provide turn-key services for high net worth individuals. Of course, not forgetting wealth management firms such as superannuation funds that are safeguarding the retirement of Australians.

    Wealth management firms are diverse in their offering as there are products and financial instruments to enact the financial strategies of their clients.

    The key when selecting a wealth management firm is to ensure they are looking at the best interest of your personal financial goals and are not pushing you into investments that are either outside the scope of your investment strategy or outside your means or risk tolerance. After all, it is your money that wealth management firms are managing.

    [1] https://www.rba.gov.au/publications/bulletin/2016/sep/pdf/rba-bulletin-2016-09-banks-wealth-management-activities-in-australia.pdf

    We welcome you to give our team a call to discuss your investment goals and objectives.

    You can call Walker Capital Australia on +61 2 8076 2210, and we’ll see how we can help you achieve your investment goals.

    Want to read more great information on Wealth Management Check out our Wealth Management article: What is Wealth Management and how did the Royal Commission change the sector?