Recent research provides insights into what insights financial advisers really need
By Marthinus van der Nest, Head of Amplify
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 are wanting in order them to enable them to advise clients and recommend investments.
The results, from the advisers surveyed, 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 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 require help to stop making short term or panic decisions, to continue listening to advice , not making impulsive decisions and withdrawing funds. “Our research respondents highlighted all of the biggest mistakes that prevent 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.
The biggest investment drivers, according to the research, were the quality of the information and insights provided prior to investment, the amount of knowledge and information about the investment, what the investment outcome would help the investor achieve in their life, 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 and life experiences and fulfilment that they hoped the investment will bring.
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 we have heard the feedback,” Van der Nest said. “The insights have enabled us to change our gameplan and are providing avenues for advisers to rethink their gameplan too. Aligning our views will have long term beneficial effects for all of us.”
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