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Recent research provides insights into what insights financial advisers need
Knowing and tuning in to what advisers and investors want is key to an investment strategy which creates mutually beneficial outcomes.
Recent research conducted by Amplify Investment Partners has revealed significant insights into the information, insights and knowledge that advisers want to enable them to advise clients and recommend investments.Â
The advisers’ results indicated that the most important things their clients look for from the people managing their money are: predictable performance and return; honesty and transparency; support, certainty, security and structure and a different and unique investment philosophy.
“While the results indicated that there is already a strong alignment between what investors and advisers want, we are listening closely to what the research shows and adjusting our gameplan to make sure we constantly improve and deliver,” said the head of Amplify, Marthinus van der Nest.
“Significantly, we are one of the few investment companies that use independent managers with different and unique investment philosophies that were high on adviser and investor needs, and which we believe are critical components to our success and us meeting investors’ aims and ambitions.”
Amplify’s research showed that investors need help to stop making short-term or panic decisions, continue listening to advice, and not make impulsive decisions and withdraw funds. “Our research respondents highlighted all the biggest mistakes preventing investors from reaching their goals. With so much volatility and uncertainty in the market, we believe strongly that our fund managers, who focus on superior risk-adjusted returns, are in a position to prevent these mistakes,” Van der Nest said.
Adviser feedback data indicated that more than 90% were open to advising clients to switch to a new investment brand or fund. Asked why they referred certain fund managers; the main reasons were inflation, beating returns and trust. They highly valued consistent out-performance of the benchmark, investment philosophy (how the money is invested), what the brand stands for (how they create value), how easy it is to engage with the brand or fund, and how simple and easy it is to understand investment insights. Â
The biggest investment drivers, according to the research, were the quality of the information and insights provided before investment, the amount of knowledge and information about the investment, what the investment outcome would help the investor achieve in their life, the belief that investment decisions would be met, level of returns and that the investment experience is positive, easy and effortless.
Respondents emphasised the freedom, independence, life experiences, and fulfilment they hoped the investment would bring.Â
In response to the results, Amplify is teaming up with some of South Africa’s top thinkers and game changers to help people in the investment community evaluate risk, make better decisions, form better habits and build their own brands. These include well-known speakers, performance coaches, entrepreneurs, authors and brand managers, who will help them learn to keep a cool head while riding the storm.
“We have done the research and heard the feedback,” Van der Nest said. “The insights have enabled us to change our game plan and are providing avenues for advisers to rethink their game plan too. Aligning our views will have long-term beneficial effects for all of us.”Â
Disclaimer:
AMPLIFY INVESTMENT PARTNERS (PTY) LTD IS AN AUTHORISED FINANCIAL SERVICES PROVIDER (FSP 712).
Sanlam Collective Investments (RF) (Pty) Ltd is a registered and approved Manager under the Collective Investment Schemes Control Act. Collective investment schemes are generally medium- to long-term investments. Past performance is not necessarily a guide to future performance, and the value of investments/units /unit trusts may go down and up. The Manager’s schedule of fees and maximum commissions is available on request. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The Manager does not provide any guarantee concerning either the capital or the return of a portfolio. The manager has the right to close the portfolio to new investors to manage it more efficiently in accordance with its mandate. Income funds derive their income primarily from interest-bearing instruments. The yield is current and is calculated daily.
If the fund holds assets in foreign countries, it could be exposed to the following risks regarding potential liquidity constraints and the repatriation of funds: macro-economic, political, and foreign exchange. The Manager retains full legal responsibility for the third-party named portfolio.
While CIS in hedge funds differ from CIS in securities (long-only portfolios), the two may appear similar, as both are structured similarly and subject to the same regulatory requirements. A portfolio’s ability to repurchase depends upon the liquidity of the securities and cash of the portfolio. In exceptional circumstances, a manager may suspend repurchases for a period, subject to regulatory approval, to await liquidity, and the manager must keep the investors informed about these circumstances. Further risks associated with hedge funds include: investment strategies may be inherently risky; leverage usually means higher volatility; short-selling can lead to significant losses; unlisted instruments might be valued incorrectly; fixed income instruments may be low-grade; exchange rates could turn against the fund; other complex investments might be misunderstood; the client may be caught in a liquidity squeeze; the prime broker or custodian may default; regulations could change; past performance might be theoretical; or the manager may be conflicted.
