The findings, conducted by financial research consultancy CoreData as part of Colonial First State’s advice insights report, surveyed 270 “mass affluent and high-net-worth individuals” and over 200 advisers to examine investor behaviour and sentiment.
The results showed that investor sentiment was up in the December quarter for 2021 to 31 out of 100 (up from 19 in Q4 2020), as well as higher levels of household financial security including the ability to pay bills and pay off debt.
Investor interest in purchasing new products also improved, however, some remained reluctant to commit to new investments.
"More recently, investment markets have weakened, and concerns have increased over rising inflation and interest rates," CFS chief distribution officer Bryce Quirk said.
"It’s likely investors’ confidence may have been shaken, but our findings suggest that investors are moving past their worries about the pandemic and lockdowns and are looking to the future again.
“With markets still volatile, there are opportunities for advisers to support their clients in staying focused on long-term results and proving high quality advice as investors rebuild their confidence and wait for compelling investment opportunities."
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
