Adviser numbers stabilise, reflecting positive market outlook: 2024 Adviser Product and Marketing Needs Report

Irene Guiamatsia

Leading financial services industry research firm Investment Trends has released the 17^th edition of its 2024 Adviser Product and Marketing Needs Report, highlighting key trends and opportunities within the financial advice landscape.

The report shows that the financial advice sector is stabilising, with adviser numbers holding steady and exit intentions declining, reflecting a positive market outlook. As of May 2024, there are approximately 15,516 financial advisers in Australia, with the proportion planning to exit the industry in the next two years down to 6% from 7% in 2023.

The data also indicates a notable trend: the rise of ‘insourcers’—advisers who view product selection as essential to their client value proposition. This group has grown significantly over the past year, with many managing larger funds under advice.

“The stabilisation in adviser numbers and the decline in exit intentions are very promising developments,” said Irene Guiamatsia, Head of Research at Investment Trends. “These trends should open up significant potential for advisers to enhance their service offering and drive growth in the financial services sector.”

The report highlights that more advisers are looking to stay the course with their general approach to investment selection, with 35% not intending to make changes in the next year, up from 26% in 2023. However, in a significant shift, they now give equal consideration to ETFs and active unlisted managed funds when constructing core portfolios.

“Advisers’ willingness to equally consider using a mix of passive and active investments highlights a significant strategic opportunity,” said Guiamatsia. “We have seen ETFs overtake active unlisted managed funds as the preferred investment product for core portfolio allocation, with managed accounts, index unlisted managed funds, and direct shares topping the list.”

The report also indicates an opportunity for superfunds to enhance adviser distribution by focusing on research ratings, digital tools, and client education for end-clients. The results reveal that nearly 70% of advisers recommend their main platform’s superfund offering to clients, underscoring the potential impact of focusing on these areas. Advisers also cite multiple factors when recommending superfunds to their clients: fees (73%), range of investment options (57%), good customer service/support (49%) and online access (42%).

“Advisers are increasingly demanding resources that simplify complex information and can be easily shared,” concluded Guiamatsia. “Superfunds that address these needs will be in the best position to strengthen their relationships with advisers, ultimately leading to increased loyalty and advocacy.”

About Investment Trends

Investment Trends is a specialist financial services market research organisation providing business insights and decision support information to many of the world’s leading financial services organisations. We combine analytical rigour and strategic thinking with the most advanced market research and statistical techniques to help our clients gain competitive advantage. As a company we aim to improve the lives of millions of investors by making the whole financial services industry better.

Our research coverage spans ten countries across Australia, Asia, Europe and the US. Our clients include industry regulators, leading local and global banks, investment platforms, leverage trading providers, fund managers, superannuation and pension funds, product issuers and manufacturers and financial advisory software providers.

Research Methodology:

The Investment Trends 2024 Adviser Product and Marketing Needs Report provides a detailed analysis of key trends and opportunities within the financial advice sector.

Based on a quantitative online survey of financial advisers conducted by Investment Trends between 02 May 2024 and 02 June 2024. Total number of responses after data cleaning and validation: n=1,732 financial advisers.