Global survey by Natixis highlights role of adviser in investor education

A global survey of high net worth investors conducted by Natixis Global Asset Management has highlighted the importance of the financial adviser in educating individual investors and helping them choose a fitting investment strategy in an increasingly difficult investment climate.

The survey covered over 5,300 individual investors with enough investable assets to qualify them for the status of high net worth individual. They were based in 14 countries across the globe, including UK, Spain and Italy in Europe, as well as Asia, South America, the US and the Middle East.

Over half the investors polled revealed more trust and reliance on their financial advisers now than ever before.

For example, 56% said they are revealing their expectations to their financial advisers now more than ever, while 59% said they are more interested in discussing risk.

Additionally, specific data for the UK shows that over 60% of investors feel their advisers understand their attitudes to risk and clearly explains the relationship between risk and return in their investment portfolios.

This places the investment adviser in a favourable position to educate the investor on the options available on the market.

Ed Farrington (pictured), managing director, global key accounts at Natixis Global Asset Management, says: “The data on the adviser-client relationship is very positive. Many strategies available to clients now are relatively new compared to what they are used to, so it takes time to understand them. Clients will be more open to new solutions if they are being educated.”

This is particularly necessary now, as a dominant proportion of the survey respondents is unsure about alternative investment options and feels they do not know enough about this asset class to commit capital to it.

Seven in ten investors across the globe report they only invest in products they understand and say they need to learn more about alternatives. Two in five investors believe that alternatives are for wealthy investors or institutions only and almost half say they have never discussed this investment option with their advisers.

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