POWERED BY MOMENTUM MEDIA
Australians fare worst for portfolio downturn
Australian investors have had their portfolios hit worse than other Asia-Pacific regions with 60% saying the pandemic had negatively impacted their finances.
PIMCO surveyed 2,500 investors in five Asia Pacific markets and found just over half (51%) of respondents on average suffered a negative impact due to COVID-19. However, this rose to 60% for respondents in Australia.
The impact was worst for those who earnt less than $1,800 per week where 19% of respondents in this category described how the pandemic had had a ‘major negative impact’ on their finances.
Nevertheless, Australians were optimistic on growth in the next 12 months and expected more national and regional economic growth than their counterparts.
Looking at advice, most Australian investors put their faith in their previous investment experience with 59% saying this contributed most to their decisions compared to an APAC average of 48%. A further 58% said they valued the advice of investment experts, far higher than the 36% average.
The most-reliable sources of information came from asset managers, financial institutions and investment consultants.
Adrian Stewart, head of client management, APAC ex Japan, said: “PIMCO has been a strong advocate for the benefit of advice and we were pleased but not surprised to see the level of trust that Australian investors have in their financial advisers. Relying on the expertise of investment specialists can be a helpful way of combatting cognitive and emotional biases when investing”.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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