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 financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.