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Investors more comfortable
Investors are currently feeling more confident about their managed investments.
That is the bottom line of research commissioned by the Investment and Financial Services Association (IFSA) and conducted by which suggests that consumers are becoming more comfortable with managed investments in the wake of the financial services reform process.
However, the research indicated that fees remained a problem in the minds of many investors.
Commenting on the outcome of the research, IFSA chief executive said that compared with similar research conducted in 2004, satisfaction with managed funds and superannuation had shown a marked increase, as had satisfaction with direct shares.
He said that in comparison, satisfaction with property investment had slumped.
“In 2005, managed investment customers appear to be less stressed than they were 12 months ago, and less concerned about short-term two to five year returns,” Gilbert said.
“The findings indicate that Financial Services Reform is working, and that there is sufficient market transparency to ensure that financial advisers are complying with their obligations,” he said.
Perhaps more importantly for IFSA, the research also indicated a more positive attitude to the role of financial advisers.
“Contrary to some perceptions in the community, investor attitudes towards financial advisers and their services are positive, and becoming increasingly so,” Gilbert said.
“Almost 60 per cent of those with managed investments currently use, or are very liked to take advantage of, financial advice in 2006,” he said.
Gilbert said that the survey found that satisfaction among those who did access advice was running at 86 per cent.
Other findings in the survey include:
* Consumers feel improvements can still be made with respect to fees.
* Investors who use financial advisers are more satisfied than they were last year.
* Satisfaction with managed investments, across all 18 identified managed investment key choice drivers, is noticeably higher among investors who currently use a financial planner.
* Nearly one in four Australian adults currently uses a financial adviser or planner.
* Satisfaction with financial advisers is highest among investors who have a face-to-face meeting at least every six months.
AUTHOR
Mike Taylor
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