Numbers of advice seekers plummet

The number of Australians seeking professional investment advice has fallen markedly over the past two years, even though client satisfaction with advisers has risen sharply.

New research from ACNielsen found 40 per cent of investors currently seek professional investment advice from a financial adviser, down from 60 per cent two years ago.

However, ACNielsen’s eighth bi-annual Wealth Management Report found 80 per cent of clients positively rated the advice they received from planners, up from 71 per cent six months previously.

Fund managers also faired well, with nearly two-thirds of respondents saying they would recommend their manager to a friend or colleague.

The report was based on an online survey of almost 25,000 consumers.

ACNielsen associate director client service Glenn Wealands said that while the DIY investment trend is continuing and less investors are seeking investment advice, of those who do consult planners and fund managers, the satisfaction levels are very high.

“This has no doubt been buoyed by the continued strong growth of the domestic equities market,” Wealands said.

Twenty-six per cent of investors thought Australian shares would provide the best investment performance in 2005. Thirteen per cent of respondents tipped international shares to provide the best performance, while 11 per cent said managed funds would out-perform other investment types.