More than $3 million per planner still in cash
Across an average planner’s client base, there is about $3.2 million sitting in cash that would have otherwise been invested in growth assets, but hasn’t been due to market volatility, according to an Investment Trends survey.
The December 2010 Adviser Product Needs Report, which surveyed 778 planners, found more than half of clients are waiting for their financial adviser to give the green light for a safe return to the investment market.
Investment Trends investment analyst Recep Peker (pictured) said 60 per cent of advisers thought the main investment trigger was confidence that the economic recovery was real, but that one quarter had already began investing.
“After the global financial crisis hit, a lot of clients wanted to pull out of the market because of negative sentiment, but one-third of planners tried to convince their clients to stay invested,” Peker said.
Keeping clients invested in volatile times is often used by planners as a value add when dealing with their clients, but the survey also found portfolio construction and time-saving strategies made up the main part of their value proposition.
In fact, portfolio construction and administration efficacy get a mention with over 90 per cent of advisers.
“This constitutes helping them diversify their portfolio, choosing quality fund managers, portfolio administration and reporting – those are the most standard things planners mention to their clients,” Peker said.
AUTHOR
Milana Pokrajac
Recommended for you
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
Zenith Investment Partners has launched a range of new managed account portfolios over the past quarter, including on Insignia Financial’s Expand platform.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
