Investment advice critical in volatile times, SMSF advisors told

Market volatility means investors will really be relying on their advisors, who must take extra care and diligence, Global CEO of Vanguard Investments Bill McNabb told attendees of the 2017 SMSF Association National Conference.

“The rise in populism and the impact of 10 to 20 years of globalisation and technical revolution are changing the landscape and we really have to keep that in mind,” said McNabb.

“I think that these forces are driving geopolitical uncertainty and we should expect more uncertainty. The downside for the investor here is that they are not going to get compensated for it. That is a tough message to take to them.”

Mr McNabb said the move to fee for service had been a “really good thing” for clients and the whole advisor community.

“There is a lot of transparency now around fees and more transparency in general than ever,” he said.

Speaking about the shift in focus to the post-retirement phase, McNabb said: “Everyone talks about potential solutions but I think the answer is in more sophisticated advice around well thought strategies where you really do the math for the clients.”

McNabb also warned that there was going to be disruption from robo advice, unless advisors move to take advantage of it themselves.

“What we are seeing is many of the best practices try to take the best from the technology and add their own value proposition to help the client.”

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