COVID-19 to increase advice demand
A survey of 70 advisers by Allan Gray shows 77% saying COVID-19 will increase demand for financial advice moving forward, with 78% saying they were now working from home.
When asked if the Royal Commission recommendations should be put on hold during the pandemic, 54% said yes, 25% said a three-month extension, 14% were undecided and 7% said no.
Advisers also said they were overloaded with communication from fund managers, as 36% said there was a plethora of information from managers and only 9% wanting more.
When it came to receiving that information, video and webcasts were the favourite with 61%, followed by written communication (22%) and face-to-face (14%).
Simon Mawhinney, Allan Gray chief investment officer, said despite the earnings headwinds from the COVID-19 pandemic, the market offered compelling investment opportunities for those with a longer-term perspective.
“Indiscriminate selling has resulted in companies with strong balance sheets and excellent asset bases selling at very attractive prices,” Mawhinney said.
“Subject to the severity of the impairment cycle, even the banks might offer exceptional long-term value.”
AUTHOR
Chris Dastoor
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