Industry shifts from stock picking to asset allocating

 — 1 minute read

Many stockbrokers and financial planners are repositioning their service offering from stock picking to that of asset allocating as it adjusts to evolving investor needs, according to new research.

Investment Trends 2018 Margin Lending Adviser Report found that high-net-worth (HNW) investors increasingly desire more than just domestic equities advice from stockbrokers.

But in response, only 33 per cent of brokers intend to position themselves as stockbrokers to their clients in 12 months’ time.


Instead, 25 per cent are looking to call themselves wealth managers, 14 per cent investment managers and 13 per cent financial advisers.

The report said that, in line with evolving client needs, stockbrokers and financial planners anticipate significant changes to the products they recommend, moving particularly towards solutions that provide diversification, low cost, and require less admin and paperwork.

“The growth in the use of ETFs and managed accounts among advisers reflects their quest to expand their service offering and align their proposition more closely to their clients’ needs,” said Investment Trends analyst John Carver.

“We expect this trend to persist as advisers increasingly prioritise diversification and capital preservation when selecting investments for clients.”

The study is based on a survey of 766 financial planners and 223 stockbrokers who provide financial advice, concluded in November 2018.



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Industry shifts from stock picking to asset allocating
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Adrian Flores

Adrian Flores

Adrian Flores is a features editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected]


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