Financial Planning

Advisers hopeful about COVID-19 impact

coronavirus financial advice

More than 75 per cent of financial advisers expect the economic impact of the coronavirus to result in long-term demand for financial advice.

Nearly 80 per cent of financial advisers believe the coronavirus pandemic will increase demand for financial advice, a survey has revealed.

According to the survey conducted by fund manager Allan Gray, 77 per cent of the 70 financial advisers surveyed expected the economic impact of COVID-19 to result in long-term demand for financial advice.

Allan Gray chief investment officer Simon Mawhinney said the financial markets still had much to offer investors with a long-term perspective, despite the volatility caused by the pandemic.

“There is still lots of opportunity in the market. Indiscriminate selling has resulted in companies with strong balance sheets and excellent asset bases selling at very attractive prices,” Gray said.

“Subject to the severity of the impairment cycle, even the banks might offer exceptional long-term value.”

More than half of the advisers surveyed said recommendations from the banking and financial services royal commission should be halted during the pandemic, with 25 per cent noting their preference for a three-month extension to the recommendations.

In addition, 77 per cent of advisers indicated they had an optimistic view of the financial markets in spite of the current conditions.

The survey also revealed financial advisers felt “overloaded” with communication from fund managers, with 36 per cent noting they were inundated with information from managers and only 9 per cent indicating they would benefit from receiving more information.

Video and webcasts were selected by 61 per cent of advisers as their preferred mode of receiving information from fund managers, with 22 per cent showing a preference for written communication, while 14 per cent said they preferred face-to-face communication.

Last week, Centrepoint Alliance advice services and solutions group executive Kate Anderson urged financial advisers to “overcommunicate” with their clients in order to reassure them during the economic uncertainty caused by the COVID-19 pandemic.

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