Overall, nearly 72% of UAE advisers are in a growth phase, as per the study conducted by the Durable Portfolio Construction Research Centre of Natixis.
About 40% of UAE advisers said business is growing strongly, compared to 13% of advisers globally – "a testament to their skills in forging strong client relationships, providing a high level of advice and making the right investment decisions”, said Natixis.
“The industry is clearly moving in the right direction, with the majority of advisers, both globally and in the UAE, reporting good levels of business growth,” said Moad Touhami, head of distribution, NGAM Middle East.
Globally, one of the biggest challenges that advisers face is in constructing portfolios that reduce risks and enhance returns simultaneously.
The study showed UAE advisers are two times more likely than their international peers to balance client asset growth with protection of capital, with 77% of local advisers seeking specific investment strategies aimed at managing volatility.
“Asset management companies can play a critical role in meeting these challenges and contributing to the development of the financial advisory business with research, data and new investment techniques to help advisers construct better portfolios,” said Touhami.
Natixis has developed durable portfolio construction that replaces traditional portfolio construction targeting a range of risk rather than a range of returns.
“Our research shows that when it comes to making investment decisions, advisers are focused on risk, volatility and income – all essential to constructing more durable portfolios aimed at meeting client objectives in all market conditions,” added Touhami.
The study also revealed UAE advisers spend a considerable amount of time in investment counselling, with 37% of advisers believing it as the main service proposition compared to only 20% globally.
In an earlier Natixis survey, a staggering majority of 80% of individual investors in the UAE agreed they do not have strong investment knowledge, with only 20% per cent confident of their knowledge and choices. Furthermore, only 35% of UAE investors say they have a plan that will help them reach financial goals.
Natixis Global Asset Management’s 2013 survey of financial advisers in the UAE was conducted by CoreData and is part of a larger global study of 1,300 financial advisers in nine countries and across four continents, including the US, UK, France, Germany, Switzerland, Italy, Spain, Singapore and Dubai.
