How Far Will Research Houses Expand Their Role?

Research houses in Australia have traditionally enjoyed the benefits of genuine barriers to entry regarding competition in their market. The dominant research houses in Australia have recently diversified into investment consulting and portfolio solutions – essentially becoming product manufacturers in their own right. This combined with structural changes to the industry regarding vertical integration, potential consolidation of Super funds, the rise of managed accounts and the unwinding of commissions in many legacy products will bring a raft of differing pressures to this space in the short and medium terms.