Advisers tune up for 'rock star' year
A prediction for New Zealand’s economy to be a ‘rock star’ in 2014 will add to a growing level of optimism among financial advisers, according to an industry specialist.
Wednesday, January 8th 2014, 6:00AM
by Niko Kloeten
The prediction came from HSBC chief economist for Australia and New Zealand Paul Bloxham, who spoke on business channel CNBC this week about New Zealand’s positive outlook compared to many other developed markets.
"We think New Zealand will be the rock star economy of 2014,” he said. “Growth is going to pick up pretty solidly this year."
HSBC is forecasting New Zealand’s GDP to grow by 3.4% this year, the fastest rate of growth in seven years.
Bloxham listed three factors likely to boost New Zealand’s growth: The Canterbury rebuild, the housing boom and rising dairy prices.
Mike Moore, an adviser business consultant who owns Mike Moore Marketing, says he’s not sure whether New Zealand will live up to its rock star billing this year, but he has noticed increased optimism from advisers.
“The feel-good factor has returned,” he says.
“People not only have a positive view but they want more than the bank rate of return on their investments. What will they do with their cash? They will be looking for people to give quality advice on their capital.”
Moore says the situation has changed so much he is now no longer advising people who are younger than 60 years old to sell their businesses.
“Advisers will have new business and new advisers will set up, after a period of eight to nine years where we haven’t seen anyone hang up their shingle as a financial adviser.
“Many advisers haven’t had a new client in five years and meanwhile, they’ve got older. For the first time in five years, I’m happy to say that things are better than they were in the previous five years.”
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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