The global asset manager said, despite the fact that 80% of investors in the UAE say they do not have strong investment knowledge, 66% say they have never sought financial advice, with similar findings made in Asia.
“Only one in five investors globally said they have strong investment knowledge, meaning investors are not comfortable with the idea of putting together their own portfolios and allocating towards risk assets,” said Moad Touhami, head of distribution for Natixis Global Asset Management Dubai.
“You would think that the natural consequence of this would that people would be actively seeking financial advice. However, even in the Middle East, which is often cited as being ‘over-advised’, with advisers trying to advise a limited number of HNW individuals, this is not the case.”
Touhami added that there is therefore still a strong need for advisers to offer advice to individuals who are living and working in both onshore and offshore markets.
This opportunity is further heightened by the fact that 57% of investors in the Middle East, and 44% of investors globally, who answered the survey said they are now willing to increase their level of investment risk.
Furthermore, Natixis said advisers should also note that only 35% of investors in the Middle East said they have a plan to help them achieve their financial goals.
Hong Kong & Singapore
Natixis found a similar situation in Asia, where investors are looking to increase risk in their portfolios, but need advice to achieve this.
Furthermore, Natixis said investors in Singapore and Hong Kong have lost confidence in traditional avenues and would now opt for alternative investment strategies, albeit under advice.
Natixis found 55% of investors in Singapore were now willing to take more risk, with this figure increasing in Hong Kong to 63%.
John Hailer, chief executive officer of NGAM for the Americas and Asia cited the importance of professional advice in bridging the knowledge gap.
“Investors today are anxious about risk and volatility, and professional advice can help,” said Hailer.
“We know from history that when investors are focussed on growing assets without understanding the risks involved, it’s a recipe for disaster.
“Advisers have a huge opportunity to alter the script this time by educating people about risk and providing sustainable allocation solutions that can help smooth the ride – even through the difficult periods.”
