Adviser sentiment slumps on investor pessimism

10 February 2016
| By Mike |
image
image
expand image

Recent market volatility has impacted Australian financial adviser sentiment with the latest Wealth Insights data revealing that it has dropped to its lowest level in three years.

The data, released to Money Management, reveals sentiment to be at levels not seen since 2012 and this appears to be a direct reflection of client sentiment, with investor confidence also at levels not seen since 2012.

Wealth Insights managing director, Vanessa McMahon said the Wealth Insights Adviser Sentiment Index had reflected both the recent market volatility and concerns over China and global growth.

The index revealed a halving of the number of advisers who regarded things as being very good down from 12 per cent this time last year to just six per cent this year, with only 36 per cent of advisers describing conditions as being good compared to 50 per cent last year. Importantly, there was an increase of three per cent in the number of advisers describing things as being bad.

 

 

 

 

 

 

 

 

 

 

Where investor confidence is concerned, McMahon pointed to the fact that over three-quarters of advisers (78 per cent) reported that investors were "not at all confident" or "unsure" about investing in market.

She said this compared to only one-third of advisers reporting a similar level of investor pessimism this time last year.

McMahon noted that this lower level of confidence had impacted investment activity, with only one-third of advisers reporting that their clients were investing "a little" or "a lot", down from 67 per cent in March last year.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago