Wealthy investors want new strategies

Wealthy investors want new strategies to insulate their portfolio from volatile markets and help them manage risk, finds a survey by Natixis Global Asset Management.

The firm surveyed 300 Canadian investors with at least $258,000 in investable assets. It found that 75% of people want strategies that are less tied to the broad markets.

Some 45% of investors surveyed own alternative investments, such as private equity, real estate or hedge fund strategies. Of those who don’t, the primary reason is a lack of education about what alternatives are or how they work.

Further, 75% of people surveyed said it’s important to them to invest in companies that reflect their values, are ethically run or have a positive social impact. Of those working with advisors, though, only 47% have talked with them about ESG investing.

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The value of financial advice

Investors value financial advice. Sixty-three percent say investors who get advice are more likely to reach their financial objectives than those who don’t, and 62% think advice is worth the fees paid.

The study also found that, of all the factors influencing their financial decisions, 43% of Canadians say professional advice is the most important, followed by online research, at 21%. Beyond investment performance, 41% of investors would value getting proactive advice from advisors on what they should do next.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.