Advisers are not just investment managers

Russell Investments financial advisers Jodie Hampshire

18 July 2019
| By Oksana Patron |
image
image
expand image

Advisers should not act as simply investment managers selecting investments on behalf of their clients but should instead focus more on adding value, these were the findings of the second annual Value of an Adviser Report by Russell Investments.

The report outlined five key elements that were the main contributors of the value of advice. The key elements identified in the report were:

  • Annual rebalancing of the portfolio
  • Preventing from behavioural mistakes
  • Cost of getting it wrong
  • Planning and additional wealth management services
  • Tax-smart planning and investing

“This report reinforces the value of advisers, which goes beyond investment-only advice and is derived from both the technical and emotional guidance they provide,” Russell Investments, managing director, Australia, Jodie Hampshire, said.

“The overwhelming majority of clients in Australia do benefit from quality advice.”

According to the report, quality financial advice in 2019 contributed, at a minimum, 4.4 per cent per annum of value to clients’ portfolios.

The study also considered the full equation of an adviser’s services, overriding the common misconception that advisers are simply investment managers selecting investments for clients with the aim of achieving a certain level of return.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

4 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 9 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 7 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 10 hours ago