Invest
Does it pay to seek advice?
Industry research has found that advisers generate an average 5.2 per cent more for their clients due to asset allocation and behavioural coaching.
Does it pay to seek advice?
Industry research has found that advisers generate an average 5.2 per cent more for their clients due to asset allocation and behavioural coaching.
Russell Investments’ Value of an Adviser report found that advisers deliver value in five categories that go beyond investment advice, including asset allocation, correcting behaviour mistakes, adequately managing clients cash holding, setting and monitoring goals, and helping with tax structures.
Russell Investments director, head of business solutions, Bronwyn Yates said advisers have shown their worth during challenging times, including during the current COVID-19 pandemic.
“Our report shows advisers can play a critical role in helping investors avoid common behavioural tendencies and may potentially help their clients achieve better portfolio returns than those investors making decisions without professional guidance,” said Ms Yates.
The report found that advisers generated an average 2.2 per cent per year for clients through ensuring they bought and sold assets at the correct times in the market cycle, and 1.5 per cent through ensuring investments were made in tax-efficient structures such as super and transition to retirement.
A further 0.9 per cent was generated through asset allocation basics such as selecting the correct investment option in the client’s super fund, and 0.6 per cent by diversifying a client’s cash and fixed income holdings.
Russell Investments also observed that during the pandemic, many investors were so fearful of loss as markets fell that they switched predominantly to defensive assets or entirely to cash just prior to the market hitting its 17 March low, locking in substantial losses.
Using the example of an investor with $250,000, the report found that selling to cash on 16 March would have locked in losses of more than $50,000 versus a member with the same balance who stayed invested during the volatility, recovering almost $20,000 already by the end of May.
Russell Investments head of wholesale partnerships Neil Rogan also pointed to savings made through tax-effective recommendations.
“Tax-effective investing was the next biggest contributor, representing 1.5 per cent of added value. While tax is often considered the realm of the accounting profession, an adviser can also provide expertise on managing and optimising investment tax for their clients,” he concluded.
RELATED ARTICLES
About the author
About the author
Advice
From broker tips to boardroom playbook: five investable lessons for disciplined growth in 2026
The real edge in 2026 won’t come from a hot tip; it will come from disciplined risk controls, clean data, and governance that can survive a stress test. Australia’s regulatory and technology context – ...Read more
Advice
Beyond Haggling: How data, speed and governance reset negotiation power in hot markets
When markets run hot, most buyers try to talk price; the best ones redesign the game. In Australia’s tight property, retail and software markets, the real edge comes from information asymmetry, clean ...Read more
Advice
Higher-for-longer, on purpose: How Australian CFOs are resetting playbooks after the RBA’s hawkish signal
The Reserve Bank’s deputy governor has firmly pushed back on near-term rate cut hopes, despite softer headline inflation. For executives, that’s not a macro footnote; it’s a new operating baseline. ...Read more
Advice
State Street economist highlights challenges for RBA amid shifting Australian labour market
In the wake of the latest employment data release, State Street, a global leader in financial services with a staggering US$49.0 trillion in assets under custody and administration, and US$5.45 ...Read more
Advice
Higher-for-longer: How one Australian retailer turned inflation headwinds into operational gains
Inflation’s latest pulse has crushed near-term rate-cut hopes and tightened the screws on mortgage-stretched households—reshaping demand patterns across Australian retail and servicesRead more
Advice
Easing bias, hard choices: What a potential RBA rate cut means for corporate strategy
A softening labour market has put an RBA rate cut back in play. For business leaders, the real question isn’t whether the cut lands in November or a subsequent meeting—it’s how to reposition balance ...Read more
Advice
Advisers tip managed portfolios into the mainstream: North report
In a significant development for the financial advisory sector, AMP's inaugural North Managed Portfolios Insights Report has forecasted that 2025 will mark a pivotal moment for the adoption of managed ...Read more
Advice
Human advantage in an AI world: Why mortgage brokers still win — and how to scale it
Only 6% of borrowers say they would use AI to research mortgages, according to Agile Market Intelligence, underscoring a trust gap in high‑stakes finance that keeps brokers central to the buying ...Read more
Advice
From broker tips to boardroom playbook: five investable lessons for disciplined growth in 2026
The real edge in 2026 won’t come from a hot tip; it will come from disciplined risk controls, clean data, and governance that can survive a stress test. Australia’s regulatory and technology context – ...Read more
Advice
Beyond Haggling: How data, speed and governance reset negotiation power in hot markets
When markets run hot, most buyers try to talk price; the best ones redesign the game. In Australia’s tight property, retail and software markets, the real edge comes from information asymmetry, clean ...Read more
Advice
Higher-for-longer, on purpose: How Australian CFOs are resetting playbooks after the RBA’s hawkish signal
The Reserve Bank’s deputy governor has firmly pushed back on near-term rate cut hopes, despite softer headline inflation. For executives, that’s not a macro footnote; it’s a new operating baseline. ...Read more
Advice
State Street economist highlights challenges for RBA amid shifting Australian labour market
In the wake of the latest employment data release, State Street, a global leader in financial services with a staggering US$49.0 trillion in assets under custody and administration, and US$5.45 ...Read more
Advice
Higher-for-longer: How one Australian retailer turned inflation headwinds into operational gains
Inflation’s latest pulse has crushed near-term rate-cut hopes and tightened the screws on mortgage-stretched households—reshaping demand patterns across Australian retail and servicesRead more
Advice
Easing bias, hard choices: What a potential RBA rate cut means for corporate strategy
A softening labour market has put an RBA rate cut back in play. For business leaders, the real question isn’t whether the cut lands in November or a subsequent meeting—it’s how to reposition balance ...Read more
Advice
Advisers tip managed portfolios into the mainstream: North report
In a significant development for the financial advisory sector, AMP's inaugural North Managed Portfolios Insights Report has forecasted that 2025 will mark a pivotal moment for the adoption of managed ...Read more
Advice
Human advantage in an AI world: Why mortgage brokers still win — and how to scale it
Only 6% of borrowers say they would use AI to research mortgages, according to Agile Market Intelligence, underscoring a trust gap in high‑stakes finance that keeps brokers central to the buying ...Read more
