Advisers upbeat on equities: survey

Almost two-thirds of financial advisers polled in a recent survey remain confident equity markets will continue to rise this year.

62 per cent of the 1,360 advisers in the survey, which was conducted byDeutsche Asset Management(DeAM), believe markets will continue on an upward swing this year, and a number of respondents also anticipate increased interest in other investment areas, such as absolute return strategies.

Only 6 per cent of advisers are uncertain or do not expect a rise, while 32 per cent were ‘mildly confident’ of a rise.

DeAM national retail sales manager Alan Miller says advisers were particularly positive in outlook for the Australian equity market.

Meanwhile, advisers are also taking an increasing interest in absolute return strategies, driven by interest from investor clients chasing portfolio diversity and reduced risk.

Of the advisers surveyed, 66 per cent say it is either important or very important to consider absolute return strategies for portfolio inclusion, and an increased overall interest in absolute return funds was recorded by 56 per cent of advisers.

For the argument against absolute return strategies, 9 per cent regarded them as unimportant, or were uncertain.

Miller says advisers are also showing increased interest in other asset classes such as listed investments, private equity, capital guarantee funds and direct property investments.

When it comes to listed investments and initial public offerings, 38 per cent expressed interest, while during a recent DeAM roadshow, 23 per cent advisers requested information on private equity investment opportunities.