Advisers ready to reinvest
Advisers are increasingly ready to rebalance client portfolios away from cash to reinvest in growth assets, according to a survey from Zurich’s investment business in Australia.
More than half of the 300 advisers surveyed indicated a potential swing back to equities in the next six to 12 months, according to Zurich.
Of those looking to rebalance clients’ cash holdings, more than three-quarters indicated a move to growth assets – with Australian shares the most preferred, followed by international equities, then listed property.
“Investors want to be sure that markets have found a floor before reinvesting cash funds into the sharemarket, which is understandable but may be harmful in the long term,” said Zurich Investments executive general manager Matthew Drennan (pictured).
Drennan highlighted the importance of the right mix of defensive and growth allocations, and advocated Zurich’s low-volatility equity income fund for risk-averse investors who also need some growth exposure.
The 41 per cent of advisers who were not looking to rebalance away from cash said they were looking for more sharemarket stability and improved economic conditions, Zurich stated.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
