New investors who engage more with financial advisers are benefiting from the recent positive results from capital markets while wealthier investors aged over 60 remain worried about the future of their investment, according to Australian Unity.
Its bi-annual Lifeplan ICFS Financial Advice Satisfaction index survey, which measures investors’ attitudes to financial advisers including perceptions of trust and reliability, technical ability and investment performance, also revealed that the financial advice industry should focus on reassuring older investors to ensure their portfolios were adjusted accurately and were prepared for future market conditions.
The index rose in October by 0.83 per cent, counting year-on-year, however it showed a slight decline of 0.27 per cent, when compared to the April 2016 index levels.
According to Lifeplan, two of the three drivers of satisfaction increased since the previous survey — performance, trust and reliability while perception of technical abilities decreased.
At the same time, perception of trust and reliability, technical abilities and performance between genders remained statistically higher for female investors, which was in line with the previous survey results.
The study also proved that the perceptions of all three drivers were positively related with duration of advice.
Australian Unity Wealth general manager of life and super, Matt Walsh, also noted that in contrast to Baby Boomers, middle-age investors were more likely to take risks and have longer investment horizons.
“Newer investors, meanwhile, who have recently started taking investment advice, have positive perceptions regarding their investments a result that we believe in part reflects the advantage of taking professional financial advice, and in part the recent positive results from the capital markets,” he said.
