Three steps to surviving volatility
Rob Thomas
Advisers are now seeking advice for themselves more than in the past, according to financial services group AXA, which claimed the best way to survive turbulent markets is with quality research and informed licensee support.
AXA head of research and technical Robert Thomas urged advisers against hiding in volatile markets and recommended a strategy of communication and portfolio diversification to differentiate their services.
“Periods of market volatility can be unsettling for clients as well as advisers.
“So it is especially crucial that research teams are experienced and, most importantly, accessible to advisers,” he said.
In a period of instability, advisers should draw on three fundamental messages: keep communicating with clients, ensure portfolios are diversified at three levels and remember that the steps for providing quality advice in volatile periods are no different to other times.
According to Thomas, those steps include using the right tax strategy, ensuring correct asset allocation and regular rebalancing back to benchmarks, using leverage for selected clients and considering the use of protected products.
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
