More than $3 million per planner still in cash
Across an average planner’s client base, there is about $3.2 million sitting in cash that would have otherwise been invested in growth assets, but hasn’t been due to market volatility, according to an Investment Trends survey.
The December 2010 Adviser Product Needs Report, which surveyed 778 planners, found more than half of clients are waiting for their financial adviser to give the green light for a safe return to the investment market.
Investment Trends investment analyst Recep Peker (pictured) said 60 per cent of advisers thought the main investment trigger was confidence that the economic recovery was real, but that one quarter had already began investing.
“After the global financial crisis hit, a lot of clients wanted to pull out of the market because of negative sentiment, but one-third of planners tried to convince their clients to stay invested,” Peker said.
Keeping clients invested in volatile times is often used by planners as a value add when dealing with their clients, but the survey also found portfolio construction and time-saving strategies made up the main part of their value proposition.
In fact, portfolio construction and administration efficacy get a mention with over 90 per cent of advisers.
“This constitutes helping them diversify their portfolio, choosing quality fund managers, portfolio administration and reporting – those are the most standard things planners mention to their clients,” Peker said.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
