Turbulent Flows

Financial advisers in Australia are more of the glass is half full ilk it would seem than the negative alternative.

Close to one in two financial advisers are expecting to increase the level of investment business they write with their main wealth management group in 2009, despite a bruising 2008 and clusters of clients taking to the hills.

Early findings from the more than 300 responding planners reveal advisers are anticipating in placing an average of $6.2 million each of new client funds in 2009 – with a third of this going into Australian equities.

Across the market, this equates to an approximate net-new $90 billion of assets flowing into the funds management industry.

This, if it eventuates, would take the average funds under advice of planners to $42.4 million each – up from $36.2 million at present.

The interim findings stem from the 2008 CoreData-BM Wealth Management Study.

Over the next three to six months, do you think that the level of buiness you are likely to place with the MAIN Wealth Management provider you use, will:

Source: CoreData-BM Wealth Management Study 2008

n = 310

As expected the lions’ share of new funds are expected to flow into Australian equities, with an increase in the asset allocation splits seen this year.

Approximately 1 in 8 of new client dollars will go into international equities.

The other two big asset classes to gain in 2009 are likely to be fixed interest and cash, but these receive somewhat less inflows  than equities.