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
ASIC has accepted a court enforceable undertaking from a Perth-based company auditor who failed to adequately conduct multiple audits on an advice firm that receivers say has $100 million missing.
After a brutal month for adviser numbers, the net loss for June now stands at more than 100 advisers, but the financial year is still on track to end in positive territory.
Two advice platforms have been identified by Adviser Ratings as standouts for efficiency as time-pressured advisers become evermore fickle in their platform selection.
Private wealth manager Escala Partners has increased its alternatives allocations to more than a third in the past three years, describing the asset class as offering “fertile ground” for diversification.
