Financial advisers need to help their clients to balance longevity risk with a lack of appetite for risk, a Perpetual analyst has told the AFA GenXT roadshow.
Speaking at the roadshow’s Sydney event yesterday, Perpetual’s Adam Curtis said that in the current climate, financial advice clients often suffer from the “investment dilemma”.
“We all in this room have a responsibility to provide stability and visibility and certainty in our client portfolios,” Mr Curtis said.
The investment dilemma arises when investors demonstrate a conservative approach to risk appetite and yet need a level of risk in their portfolio to combat longevity risk, Mr Curtis said.
Mr Curtis said adopting new approaches to benchmarking and accounting for changes in benchmarks over time may help assuage this risk.
He said advisers need to assist in building portfolios that are focused not so much on “benchmarks” as “opportunities”.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Aug 2017ASIC permanently bans former AMP adviserBy Staff Reporter
- 18 Aug 2017IRESS announces first half resultsBy Jessica Yun
- 18 Aug 2017Banks the key to closing advice gap, Tria saysBy Larissa Waterson
- 18 Aug 2017Adviser ethics certification launchedBy Staff Reporter
- 18 Aug 2017Banks evade FOFA, industry funds claimBy Larissa Waterson
- 16 Aug 2017UBS appoints head of wholesale distributionBy Staff Reporter
- view all