Advisors are weathering the pandemic crisis well
Luxemburg, 03 December 2020 – Some 30 per cent of advisors have managed to increase their revenues during the pandemic crisis while revenues remained steady for another 50 per cent, with only one fifth reporting declines. This is the result of an advisor sentiment survey that Moventum carried out in October and November in Germany and other European countries.
“All the while, daily working life has most certainly changed”, stated Sabine Said, Executive Vice President at Moventum S.C.A. “Only 30 per cent of the advisors surveyed reported they did not work any differently than before the pandemic.” In Czechia, the percentage of individuals who do not report any change at all is even zero. “Obviously work has become more digital and home office times have increased significantly”, Said explained. Administrative tasks in particular have seen a significant increase, as reported by some 30 per cent of advisors in Germany and by about 40 per cent in other European countries. At almost 70 per cent, Czechia tops that list. “It is also due to the retreat to the home office that some activities that would otherwise be carried out in the back office have had to be handled directly by the advisor”, added Said.
Clients’ need for advice has also risen sharply during the pandemic. 67.5 per cent of the advisors surveyed in Germany reported that their customers wanted more advice. In other European countries, the percentage is even higher. “The focus has certainly shifted. The survey showed that, in addition to gold and precious metals, risk assets such as shares were also in greater demand”, Said pointed out. “There was also stronger interest in the winners of the crisis, such as tech and medtech companies.” The demand for bonds, on the other hand, continued to fall, which was already evident before the crisis due to low interest rates.
ESG has also remained a topic of interest during the entire period: “The trend towards sustainable investments had just gained momentum before the pandemic”, Said highlighted. “Even if there was little demand at the very beginning, many advisors noticed a significant increase.” More than a quarter of advisors saw an increasing need for advice in that particular field.
In terms of revenues, not only advisors weathered the crisis well though. “According to the assessment of the advisors, some customer groups have also benefited”, added Said. “This primarily concerns wealthy customers with liquidity who were able to reinvest. And also those who are very digitally oriented.” For those customers, the many new digital offers were an invitation to take a much closer look at their finances", Said concluded.
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As an independent financial service partner, Moventum S.C.A. is specifically addressing financial service providers such as financial advisors, asset managers, institutional investors, and NGOs. Its services in asset management and asset building include a web-based securities investment platform focusing on funds, relieving financial advisors of administrative tasks, and integrating custody and account management for individual investors. Investment management tools, regulatory-compliant reporting and individual securities services are also part of the full-service range. Standardised fund asset management service with a sustainable, successful track record for the relevant risk/reward profiles complements the offering. The Moventum Group also enables institutional investors to outsource securities processing in its entirety. The MoventumOffice investment platform offers access to more than 9,000 investment products including funds and ETFs from more than 400 investment firms, including the use of analysis, reporting and support tools.
Moventum Asset Management S.A. (Moventum AM) is a wholly owned subsidiary of Moventum S.C.A. The management company, in which Moventum’s asset management expertise has been concentrated since the beginning of 2019, manages Moventum’s own funds and individual mandates as part of its asset management portfolios.
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