Adviser sentiment slumps
After reaching post-global financial crisis (GFC) highs in the closing months of 2014 and the opening months of this year, adviser sentiment has declined to levels not seen for nearly two years on the back of concerns about China and Greece, according to the latest Wealth Insights data.
The latest Wealth Insights Adviser Sentiment index released exclusively to Money Management has revealed that adviser sentiment dipped 19 points in July, clearly tracking the decline in the Australian Securities Exchange over the same period.
Importantly, the decline in adviser sentiment appears to be tracking that of their clients, with the Wealth Insights Investor Confidence index having declined 21 points over the period.
Wealth Insights managing director, Vanessa McMahon said that advisers had been reporting a significant drop off in investor confidence since March, with nearly half of advisers (49 per cent) now reporting that clients are "unsure" about investing in the markets.
This compared to just 28 per cent of clients who said they were unsure in March.
Probably unsurprisingly, the Wealth Insights research showed that the market uncertainty had made investors cautious, with half of the advisers sampled saying that their clients were "staying put" while 42 per cent said their clients were investing a little, while only six per cent said clients were investing a loss.
Asked to describe their level of sentiment, only 44 per cent of planners indicated that things were good or very good, compared to 49 per cent who believed things were average and seven per cent tho felt things were bad.
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
