Financial advisers play increasingly important role for Australians, Legg Mason survey

Matt Schiffman

A rising number of Australian investors are seeking out professional financial advice and have considerable trust in their advice, according to the Legg Mason 2016 Global Investment Survey.

Legg Mason surveyed 4,103 high net worth investors aged from 40 to 75 (“investors”) and 1,267 high net worth investors aged 18 to 39 (“millennials”) about their investment goals across 19 global markets.

The survey revealed that 33% of Australian investors seek out professional sources for financial advice, up from 27% last year.

The survey reveals that there is a real opportunity for financial advisers to provide advice as Australian investors view them to be the most trusted source of advice when it comes to investing, with 72% of investors responding that they had total trust in professional financial advisers. The total level of trust investors have in financial advisers was higher than all other sources of advice: family (42%), financial news (48%), forums (19%) and online platforms (18%).

When it comes to super, 62% of Australian investors agree that seeking the advice of a professional financial planner is a key way to improve understanding of their super. This is despite a large number of Australian investors (53%) losing confidence in the super system due to various changes in government.

Comparing different age groups across the globe, millennial investors were more likely to use financial advisers than older investors (80% and 46% respectively). A similar pattern was shown in Australia with millennials here twice as likely to seek help from a financial adviser at 65% (compared to 33%).

The survey also revealed that female investors across the globe are much more likely (54%) to trust their family/ friends/ co-workers for advice than men (33%).

Commenting on Australian attitudes towards financial advice, Legg Mason’s Global Head of Distribution Marketing, Matt Schiffman, said: “While advisers are being used by an increasing number of Australians, there are still many investors in Australia not receiving professional financial advice. This is creating a real opportunity for financial advisers to develop a clear and concise value proposition in their own marketing to investors.”