Adviser sentiment slumps on investor pessimism
Recent market volatility has impacted Australian financial adviser sentiment with the latest Wealth Insights data revealing that it has dropped to its lowest level in three years.
The data, released to Money Management, reveals sentiment to be at levels not seen since 2012 and this appears to be a direct reflection of client sentiment, with investor confidence also at levels not seen since 2012.
Wealth Insights managing director, Vanessa McMahon said the Wealth Insights Adviser Sentiment Index had reflected both the recent market volatility and concerns over China and global growth.
The index revealed a halving of the number of advisers who regarded things as being very good down from 12 per cent this time last year to just six per cent this year, with only 36 per cent of advisers describing conditions as being good compared to 50 per cent last year. Importantly, there was an increase of three per cent in the number of advisers describing things as being bad.
Where investor confidence is concerned, McMahon pointed to the fact that over three-quarters of advisers (78 per cent) reported that investors were "not at all confident" or "unsure" about investing in market.
She said this compared to only one-third of advisers reporting a similar level of investor pessimism this time last year.
McMahon noted that this lower level of confidence had impacted investment activity, with only one-third of advisers reporting that their clients were investing "a little" or "a lot", down from 67 per cent in March last year.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
