Advisers more positive than clients
Financial advisers have a more bullish outlook for investment markets in the new financial year compared to their clients, according to a Count Financial survey.
Four in five advisers expected markets to improve in the new financial year compared to less than half of clients, the survey found.
Advisers agreed that diversified portfolio construction should remain the cornerstone for building client wealth, while many clients favoured domestic equities, cash and then fixed interest, the survey found.
The most commonly recommended strategies were making tax-effective contributions to superannuation, and transition-to-retirement pension strategies, each recommended by 95 per cent of advisers, according to Count.
Margin lending (16 per cent) and negatively geared property investments (24 cent) were less popular, while for clients the major concerns were how to minimise tax, likely market performance and planning a comfortable retirement.
Clients were most focused on tax minimisation, future share market performance, how much is needed for a comfortable retirement and whether they should set up a self-managed super fund.
“Importantly, 69 per cent of advisers say clients are concerned with the independence or non-alignment of their financial adviser, with only 2 per cent unconcerned, and 11 per cent unsure,” said Lee Tonitto, senior executive, business development and marketing.
“This reinforces the value of an independently owned financial planning network like Count – and is something Count prides itself on,” she said.
Recommended for you
Compared to four years ago when the divide between boutique and large licensees were largely equal, adviser movements have seen this trend shift in light of new licensees commencing.
As ongoing market uncertainty sees advisers look beyond traditional equity exposure, Fidante has found adviser interest in small caps and emerging markets for portfolio returns has almost doubled since April.
CoreData has shared the top areas of demand for cryptocurrency advice but finds investors are seeking advisers who actively invest in the asset themselves.
With regulators ‘raising the bar’ on retirement planning, Lonsec Research and Ratings has urged advisers to place greater focus on sequencing and longevity risk as they navigate clients through the shifting landscape.
