Planners look on the bright side
Australian financial advisers remain positive with respect to Australian equities despite the continuing market volatility, according to survey results released today by Macquarie Equity Markets Group.
The nation-wide survey found that the majority of advisers are expecting modest to high growth from Australian equities this year, with only 3 per cent of respondents recommending their clients do not invest in shares right now.
It said that while advisers were cautiously optimistic about the year ahead, the survey showed that the biggest challenge facing advisers and their customers was where to invest following the upheavals in global investment markets.
The survey suggested the second biggest challenge was the ongoing concerns of individual investors that they would not have enough money to fund their retirements.
Commenting on the survey results, Macquarie Equity Markets Group associate director Pia Cooke said the concerns over market volatility and the need to build up retirement assets were key drivers underpinning the rising use of structured products, which aim to provide leveraged exposure to equity markets and or/capital protection.
“Our survey shows advisers and their investor clients are facing the dual challenge of where to invest safely, while at the same time being worried about not building up their asset base fast enough to fund a decent standard of living in retirement,” she said.
Cooke said it was therefore unsurprising that investors were increasingly interested in structured products that provided capital protection as well as broader wealth management benefits such as enhanced after-tax returns.
AUTHOR
Mike Taylor
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
