Advisor | October 2023
In 2023, the level of satisfaction with asset management products/mutual investment funds has been decreasing substantially, as evidenced by the results of the latest edition of FINER® CF Explorer, a yearly survey based on a sample of over 3.000 financial advisors.
Performance stands as the main matter of concern, as financial advisors deem revenues below expectations and thus unsatisfactory.
According to financial advisors, long-standing bastion of asset management, 2023 has been a complicated year in terms of portfolio composition.
The overall outcome for the month of July has confirmed a widespread preference for assets under administration, which have attracted 2,9 billion euros.
The success of BTPs, deposit accounts and bank bonds (which will persist until rates decrease) has resulted in several financial advisors indulging the requests of their clients to subscribe such products, thus reducing the added value and consequently the remuneration of valuable consultancy.
In addition, Italian families have been saving less due to the rising costs of living and poor economic conditions, with negative consequences on asset management.
The data released by Fabi have confirmed this trend: between December 2021 and March 2023, the total balance of the checking accounts of families and businesses has dropped by over 61 billion euros, from 2.076 billion to 2.015 billion.
Between January and September 2022, Italians invested only a little over 17 billion in financial ventures (in stark contrast with the 120 billion invested in 2020 and 2021).
However, this bleak scenario also features two countertrends in connection with the realm of financial advisors.
The first countertrend is the rising level of satisfaction with the new forms of direct investment in unlisted businesses, the so-called real economy; this is an important innovation since, when oriented and managed correctly, such investments can benefit both individual investors and the entrepreneurial fabric, thus generating a virtuous circle.
However, only few financial networks currently suggest this kind of investment, fearing the lack of a consolidated track record and their delayed payability.
This, together with a lacking financial education and ability to plan, induces caution.
The second countertrend is the rising level of satisfaction with non-life insurance products accompanied by a decrease in the level of satisfaction with life insurance products.
Financial advisors seem to appreciate and demand more than in the past two diametrically opposed categories of financial products: illiquid investments and non-life insurance policies.
In hindsight, this is only an apparent paradox: the right mix of investments characterized by good return prospects and by an inherent dose of risk goes well with insurance products, which protect against accidents.
Once again, financial advisors astonish for their foresight.
Nicola Ronchetti