Natixis: European advisers optimistic about 12-month growth

According to data from Natixis Investment Managers, European and British financial advisers remain optimistic about economic prospects for the coming year.

According to a poll of 1050 financial advisors in Europe and the United Kingdom, five percent growth is still attainable.

Despite a double-digit correction in stocks and bonds in the first half of 2022 and inflation hitting multi-decade highs, my forecast is accurate. These respondents are also sure that their firms will grow over the next three years, with European and UK respondents anticipating an annualised growth rate of 10 percent.

To accomplish this, professionals are attempting to stimulate market growth via new clients segmented by age, with "84 percent of European financial professionals (93 percent in the UK) targeting individuals between the ages of 50 and 60 and 54 percent (86 percent in the UK) targeting those between the ages of 60 and 65." Technology may be crucial to this expansion, as 44% and 38% of advisors in Europe and the UK, respectively, are striving to expand customer access to technology. According to the report, geopolitics, inflation, and market volatility are the top three market concerns for European and British financial professionals.

According to study conducted by Natixis, geopolitical risk is the largest danger highlighted by financial professionals, with 78 percent in Europe and 72 percent in the UK citing the Ukraine as the primary cause.

Over two-thirds of financial professionals in Europe (64%) and the United Kingdom (68%) identified geopolitical risk as the greatest portfolio concern. Darren Pilbeam, the Director of UK Sales at Natixis, stated, “Geopolitical turmoil and market volatility have resulted in a perfect storm hitting stock markets and investment portfolios. “   

In the short-term they’ll need to reset investment strategies for turbulent markets and emotional clients. In the long-term they’ll need to re-evaluate their market assumptions and determine how much the world has really changed if they are to hit their growth expectations.”

By fLEXI tEAM