Investor enthusiasm for higher risk and higher return asset classes has continued to increase into the New Year.
“Given the direction of interest rates, it will be interesting to see how much further we can go before investors have to revisit the preference for cash that has dominated since the global financial crisis (GFC),” Perpetual chief executive Geoff Lloyd told InvestorDaily.
“There is already some evidence the appetite for higher risk [and] higher return asset classes is increasing,” he said.
He explained that from a regulatory perspective, the mandatory compliance with Future of Financial Advice (FOFA) reforms from 1 July 2013 will be a key issue affecting appetite and performance within the industry.
“[FOFA] will clearly be something the whole industry has and continues to be working towards. Related to that, I believe the industry needs to further re-build consumer confidence in the value of financial services in the continued aftermath of the GFC,” Mr Lloyd said.
Patron Financial Advice director David Hasib agreed that FOFA reforms will have a vital role in addressing issues in the financial services industry over the next year.
“2013 should be welcomed as a year of change; not only change on a regulatory basis but [also as] a year to formally apply changes to one’s practice to deliver innovation, specialisation, value and service proposition and efficiencies, to name a few,” Mr Hasib told InvestorDaily.
“[This] year the industry [will] transition towards the professional body it needs to be and our clients expects it to be,” he said.
