Risk-savvy consumers are analysing their investment portfolios and identifying long-term buying opportunities as a result of the credit crunch, says AXA.

Nearly 90 per cent of respondents to a study carried out by AXA have felt some impact from the credit crunch, leading to 40 per cent of wealthier consumers reviewing their investments. Over 35 per cent said they have considered changing their bank.

AXA said this is therefore a good opportunity for advisers to help their clients make informed decisions regarding the spreading of risk, making changes to investment portfolios and assessing the financial strength and security of the companies they rate and recommend.

Three quarters of Independent Financial Advisers (IFAs) said that as a result of the credit crunch they were undertaking client reviews, while nearly two fifths were reassessing providers. Over 60 per cent reported giving an increase in cash management advice, and 74 per cent said clients were most concerned about the safety of cash, leading AXA to conclude that the recent 'flight to safety' was evident in IFA and consumer activity driven by the credit crunch.

The survey also found that nearly half of consumers said they would take less investment risk now than before the credit crunch, although nearly half also said they believed now was a good time to look at long-term investments.

Mike Kellard, CEO at AXA Winterthur Wealth Management, said: "Now is the time for IFAs to market advice as a commodity in itself by spending time with their clients, undertaking in-depth reviews and scrutinising the financial strengths and product capabilities of providers. Our research shows that, whilst consumer are understandably more risk averse today than they were a year ago, many still see long-term buying opportunities. It is up to advisers to guide them as to what those long-term opportunities are and which providers have the necessary strength to deliver the results in the long term," he added.

- Pensions Age January 2009

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