Financial advisers ready to drop cash
A vast majority of financial advisers surveyed by Zurich are looking to re-balance their clients' portfolios to hold less cash in the next 12 months.
Almost all would switch to growth assets, predominantly Australian shares, followed by international shares and direct equities.
"As the market goes through its cycle, it is likely the dependence on cash will eventually diminish," said Patric Noble, senior investment strategist at Zurich Investments.
"How long that cycle will be depends on timing, something we all acknowledge is notoriously hard to do," he added.
Confidence in the market, both their own and their clients', would be the catalyst to moving out of cash, with almost all advisers predicting the Australian market returns will be positive, but in the single digits.
The results of the survey, which included responses from 200 advisers, were released to promote Zurich Investments' Equity Income Fund, which Noble said gained exposure to shares "without riding the highs and lows of the market sentiment".
Recommended for you
The director of Ascent Investment and Coaching, Michael Dunjey, has been charged with 33 criminal offences.
Adviser Ratings’ latest financial landscape report finds there is a demographic of advice practices achieving an average revenue of $5 million, with only 3 per cent of practices overall seeing a revenue decline.
The FAAA is calling for regulators to take a partnership approach with financial advisers regarding incoming legislation, rather than treating the industry as “guinea pigs”.
There have been strong numbers of returning advisers this year so far, according to Wealth Data, already surpassing the same period for 2024.
