Based on a survey of 9,537 Australian investors, the seventh annual edition of the Investment Trends November 2012 Investor Product Needs Report is an in-depth study of the Australian investor population and their demand and usage of a wide range of investment products.

“2012 was another tough year for the Australian investment industry. Investors remained fearful with muted return expectations leading many to remain on the sidelines in cash. That said, there were some bright spots” said Investment Trends Principal Mark Johnston.

 As investors remained cautious, they continued to focus less on capital growth and more on income. This continued change in focus has helped shape the demand for different products, particularly hybrid securities, where investor numbers increased 21% from 2011 levels to 75,000 as at November 2012. Self managed super funds remained the dominant holders of hybrid securities, accounting for two-thirds of the market (by investor numbers).

Over the year to November 2012, the number of active warrant investors rose 34% from 26,000 to 35,000 as the number of warrants on issue increased 28% over the same period, filling a vacuum that had existed for these products for the last few years.

Index funds and exchange traded funds (ETFs) saw growth as investors remained very cost focused.

 UBank has the happiest cash clients
“Providers of cash accounts, term deposits and online savings accounts also did very well over 2012. Of particular note is NAB’s UBank, which had the highest levels of client satisfaction of any cash product provider.

That said, they remain vulnerable in spite of this satisfaction since a large proportion of thers are rate-chasers who are willing to switch providers if a better offer comes along,” said Johnston.

Despite a falling cash rate and the performance of the Australian share market, investors’ cash holdings continued to build up, with a corresponding increase in excess cash – cash that would normally have been invested in other investments/assets.

Green shoots appearing in 2013
“Over the last few years investors continued to hold and accumulate cash (and excess cash). When we ask them what would prompt them to invest this extra cash, increased confidence in the market and economy are the major catalysts cited,” said Johnston.

“Since the end of 2012 though, we have seen a big spike in investor return expectations, which rose from 3%p.a. in September 2012 to 8%p.a. in February 2013, a 20-month high. This rising sentiment is thus a very significant development for the Australian investment industry.”

The post Investor numbers in hybrid securities rose 21% over 2012 appeared first on AdviserVoice.

The 2011 version of the Investment Trends Planning Software Report is an in-depth analysis of fully featured planning applications most frequently used by Australian financial advisers. In Investment Trend’s December 2011 benchmarking tests, XPLAN achieved the highest overall functionality rating.

“IRESS has produced an impressive advice platform that is supporting their strategy to take Australian developed advice technology to international markets,” said Mark Johnston, Principal of Investment Trends.

“This is the fifth year in a row that XPLAN has ranked first for overall planning functionality,” added Johnston.

The report found that leading providers were the most active in adding new features to their products. Notably it commented that IRESS’ XPLAN ranked first with the much anticipated release of XPLAN 2 representing an important technology capability to support enhanced functionality in 2012.

IRESS continues to innovate across most aspects of functionality and released an important ‘Advice Container’ approach to codify Best Interest compliance in direct response to regulatory and compliance efficiency.

Andrew Walsh, IRESS’ Managing Director, commented, “IRESS continues to invest in our core XPLAN platform and bring new and innovative features to market, and it is pleasing to have this recognised again in this research by Investment Trends. Our core product and solution strength in meeting client requirements has not only seen growth in Australia but also made strategic inroads internationally, most recently in the United Kingdom where we believe our offer is significantly differentiated to local competition.”

“Our position as a wealth technology provider in numerous leading wealth markets is increasingly unique and strategic to our client base. Trends in consumerism and advice reform are resonating internationally, and the opportunity to address these common aspects with scale and broad experience presents numerous opportunities to IRESS and our clients,” added Walsh.

The post XPLAN announced as Australia’s leading advice technology again appeared first on AdviserVoice.