Planners losing confidence in Aussie share market

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Financial planners are showing faltering confidence in the Australian share market amid higher volatility, according to a new report.

The Investment Trends 2015 Adviser Product and Marketing Needs Report has found financial planners are displaying less confidence in the share market. As at August 2015, planners expect domestic stocks to deliver capital gains of only 6% on average. The result is down from an expectation of 8% in the 2014 study.

“We’re finding global economic concerns are dampening both investors’ and professional advisers’ share market return expectations,” said Investment Trends head of research for wealth management Recep Peker.

Peker said planners were showing the lowest return expectations in the study's history.

“What’s notable about our latest study, though, is that financial planners’ return expectations are at the lowest level we’ve ever observed - even lower than during the depths of the GFC in late 2008.”

As a result, Peker said planners were moving toward traditional unlisted managed funds and ETFs and away from stock picking.

“This is a reflection of planners increasingly prioritising diversification and low cost when selecting investments for their clients,” said Peker. “Notably, financial planners’ usage of passive managed funds - which provide low cost access to diversification - for new client money is at record levels.”