3 Comments 3 Commentsby Niko Kloeten
Five years after the global financial crisis struck, some advisers say they are finally seeing clients become interested in equities again as the market continues to perform well.
New Zealand Financial Planning adviser Jordi Garcia is one of those seeing a shift in mindset by investors in recent months.
One of the changes has been a general increase in interest in seeking financial advice, he says.
“I think the appetite is certainly there. We’ve got new clients coming in and there’s been a broad uptake in people seeking advice, where a year to 18 months ago they might not have. It’s an upward trend on that score.”
Garcia says there has also been an increased level of inquiry about shares from existing clients.
“With existing clients we follow a process within their risk profile so it’s not a question of them saying, ‘I’d like to take on more risk’. However, I have noticed a few clients asking questions like, is it worth taking up Meridian or other share offers?”
And he says the increased appetite is not just being driven by strong market performance, which has seen KiwiSaver growth funds average 14.5% in the year to September 30 according to Morningstar.
“People are looking for income and there’s been quite a move back into the share market because of the yield. I’m being asked questions by some of my older clients, saying if the bank is going to give me 3-3.5%, where can I do better?
“A good number of shares will give you 5%-6%-7%, at least on yield, but then you have the volatility.”
Heathcote Investment Partners director Clayton Coplestone says he’s finding a “general level of optimism out there” among financial advisers and fund managers, who are seeing improved fund flows.
"An adviser I spoke to recently said it was the first time in a long time they can go to clients with consistently good portfolio returns, which has made for a healthier discussion.”
“Clients are now prepared to take on more portfolio risk. They’re not just content with leaving it in the bank.”
Coplestone also points to low bank deposit rates, which he says are now at levels that are affecting lifestyles.
“Instead of going to the restaurant once a week you might go once a month. You’re watching your pennies a lot more.”
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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Same old same old. We get new clients when markets look better (are expensive).
Where were they when things were gloomy and assets were cheap ?
Who would be an investment adviser ?
You just can't win.
Investor education needed urgently.