Australian financial intermediaries want more support

Intermediaries would appreciate more analysis on market trends and content support that will help them serve their clients better, research by Fundamental Media found

Key findings:

• 69% of Australian financial intermediaries are satisfied with the overall support received from asset managers
• More than 40% of Australian intermediaries expect to increase their clients’ exposure to fixed income and Australian equities
• The adoption of ESG has grown significantly, from 15% in 2018 to 52% in 2022

The majority of Australian financial intermediaries (69%) are satisfied with the overall support received from asset managers in the region, according to research by Fundamental Media. This satisfaction is driven by asset managers’ online events, regular communication and good quality CPD training.

While respondents are happy with asset managers’ communications, they would welcome more analysis on market trends and content support that will help them serve their clients better. Similar trends are observed when looking at initiatives from asset managers that were most valued during the pandemic with webinars and market updates rated as highly useful.

When it comes to events, respondents had no clear preference for either online or offline events, as Australian intermediaries see benefits in both. Online events are liked for their convenience and efficiency, while in-person events are preferred for their value derived from face-to-face networking and interaction.

Investment preferences

At the time of the research, more than 40% of Australian intermediaries expect to increase their clients’ exposure to fixed income and Australian equities. More than a third of respondents also expect to increase exposure to absolute return and active management strategies.

Research on new funds is most often driven by client requests and recommendations from peers and colleagues, highlighting the importance of networking within the Australian financial intermediary community.

When selecting a new product, cost and investment philosophy are the two most important factors they take into consideration. Quantitative fund ratings have seen a significant increase in their ranking since 2018 and ranks as the third most important selection factor in 2022.

Other findings from the Australian financial intermediary research include:

• The vast majority of Australian intermediaries (86%) use ETFs in their clients’ portfolios, a significant increase from the 56% seen in 2018.
• The adoption of ESG has grown significantly, from 15% in 2018 to 52% in 2022. This increase is mainly driven by client requests, which was the main reason for adopting ESG criteria for 61% of respondents. Many respondents feel there is not enough information available on ESG, that support from asset managers is lacking and that ESG ratings are unreliable.
• Since the start of the Covid-19 pandemic, the use of print media has seen a steep drop since 2018, as did radio and TV, while mobile and desktop use has increased significantly. Those who still engage with print are most likely to receive print publications at their place of work.
• The use of social media for professional purposes is on the rise, with most respondents using it to stay up to date with the latest news and network with peers.
• With audio channels proliferating since the pandemic, podcasts are also emerging as a new established media channel: 78% of Australian intermediaries listen to podcasts, with 43% listening to them at least once a week.