High Noon For Financial Planners

Australian financial planners are significantly less bullish about attracting new clients, with new data revealing a drop in sentiment in both business outlook and new client generation.

Advisers have not moved into negative territory but their outlook has retreated to more ‘neutral’ground after a period of strong positive attitudes, according to the latest CoreData Adviser Sentiment Index.

The index tracks planner perceptions on a range of topics from their position towards the various asset classes to the performance of their businesses and the broader economy.

Last week AMP head Andrew Mohl was quoted saying he had arrived at midnight and was leaving at noon when it was announced he was leaving the group.

The time, it seems, is also approaching high noon for financial planners too as opinion reverts towards a neutral outlook.

Planner Outlook For Business (-50 to +50)

The findings, which stem from data collected between August 9 and 14 of 487 planners, were to be expected.

A recent share market shakeout and jump in interest rates, with more expected on the horizon was always going to dampen adviser attitudes.

However interestingly, advisers had weathered other shakeouts and interest rate rises over the past three years, and they are now perhaps signalling something has changed.

The chart below shows the recent clawback in semtiment is a continuation of a longer-term trend where adviser sentiment on attracting new clients had already started to decline.

The recent market events have added weight to this perception and sentiment for this indicator has fallen into the neutral range.

Given that falling sentiment about attracting new clients is supported by falling sentiment for business inflows and client retention, this suggests planners are reading the mood of the market and are indeed agreeing that it is high noon on the financial planner economic clock.