Advisers must hire specialists or outsource

Financial advisers must be open to technological, political and social changes in 2014 and adapt accordingly, one economist has said.

Released yesterday, investment firm Prescott Securities' Ten Best Investment Ideas for 2014 identifies key trends and opportunities for investors this year.

Speaking to ifa, Prescott Securities senior economist Alan Hutchinson said the way products and services are being consumed is changing at a rate never before seen.

Advisers will need to take advantage of changes in technology to improve their service offering, Mr Hutchinson said.

“There are some really good firms out there that are adapting to the change, particularly on the tech side, and I think they are taking advantage of that in terms of providing a better service offering to their clients,” he said.

“The more advisers can do that, moving forward, the better the service offering and the better the outcome.”

It is difficult to be on top of all the things that are going on in the world at the moment, Mr Hutchinson said, but advisers can bolster their offering by hiring specialists.

“Whether that be international equities, Australian equities, property, infrastructure or fixed interest, it is becoming more and more important because the game is changing so much quicker than it has in the past,” he said.

“There are obviously some very intelligent, very skilled people out there that are looking at their sector and their space every day, but I think utilising them and their expertise in their sectors is going to be extremely important in 2014 and onwards.”

However, Mr Hutchinson stressed that while advisers should use the best people in their respective fields, they should also know their limitations and when to outsource.

“Obviously focusing on what you’re good at but also knowing when the best time is to outsource to fund managers or asset consultants, and I think that’s very important,” he said.

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