News Article Published:
Tuesday, 30 October 2007
Category:
Financial Services
Many of the UK's wealthy individuals continue to eschew the private client investment management sector - but private client managers are failing to attract them as a result of their poor marketing programmes, it has been claimed.
Ian Orton, writing for thewealthnet.com, says that the pictures of "queues of people attempting to withdraw their cash deposits" from Northern Rock branches in September, should provide evidence that there are plenty of people in the UK who are financially wealthy - as many had deposits that were six and seven figure sums.
But many of these individuals fail to seek out the services of a private client investment manager, even though these professionals have improved their performance significantly.
Mr Orton states that this is because "UK private client firms appear to be very reluctant to market their services to potential clients in general".
"Marketing often appears to be the 'withered arm' of the typical UK-based private client investment manager," he adds.
London research firm ComPeer recently revealed that private client investment management and stockbroking firms typically spend less than two percent of revenues on marketing-related activities - a much lower proportion than companies in other service-orientated sectors do.
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