Investors no longer in retreat
A significant pick-up in planner sentiment reported late last month has been driven by a commensurate improvement in investor sentiment, according to the latest data released by Wealth Insights.
The data, the result of a survey of more than 300 planners as well as focus groups over the past month, has not only revealed improving confidence on the part of investors but a willingness to move further out of cash and back into the market.
Wealth Insights managing director Vanessa McMahon said investor confidence had significantly improved over the past 12 months to a stage where nearly three-quarters of investors were indicating via advisers they were either "somewhat confident" or "confident".
However more important was the fact that investors were no longer in retreat and were either holding ground or moving back into the market.
This was indicated by the fact that in September, 2012, around 16 per cent of investors were signaling that they were actually withdrawing money from the market while 58 per cent were staying put and just 26 per cent were investing a little.
McMahon said that in September 2013 11 per cent of investors had responded they were investing a lot, while 68 per cent were investing a little, with the remainder staying put and no one actually in retreat.
"The vast majority of advisers (81 per cent) report that their clients are now investing in the markets, albeit slightly," she said.
The Wealth Insights research late last month pointed to a pick-up in planner sentiment which seemed to be related not only to improving equity markets but to the change of Government which followed the 7 September Federal Election.
The new data on investor sentiment revealed the Wealth Insights Investor Sentiment Index to be at its highest level in more than four years.
McMahon noted that the improved investor sentiment was clearly feeding into levels of confidence among planners.
AUTHOR
Mike Taylor
Recommended for you
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
