Demand for bespoke investment services is growing as financial advice clients seek more investment choices, study shows
- Financial advisers say their clients increasingly want access to ETFs, investment trusts, equities, bonds and AIM shares
Growing demand for bespoke investment services is being fuelled by clients of financial advisers seeking a greater choice of investments for their portfolios, new research* from Rathbones Group, one of the UK’s leading wealth management firms, shows.
The study, based on responses from financial advisers across the UK, found demand from clients for a wider range of investment vehicles and increased flexibility is driving growth in bespoke services.
Access to ETFs is the main reason identified by the study, with all advisers questioned agreeing that it is a major reason behind the growth. But it also found strong support for access to investment trusts, direct equities and bonds and AIM shares.
More than nine out of 10 (91%) advisers agree access to investment trusts is a key reason for the growth of bespoke services, with just 5% disagreeing. Around 95% agree access to direct equities and bonds is a key reason for clients moving to bespoke services, with just 5% disagreeing.
Almost all (97%) agree that access to AIM shares and their potential tax benefits is fuelling growth in bespoke services, with just 3% disagreeing or not having a view.
Advisers see opportunities in the increasing availability of Long-Term Asset Funds and private market investments for high-net-worth clients. Around 93% agree bespoke investment services are becoming more relevant to clients as a result.
Simon Taylor, Head of Strategic Partnerships, Rathbones Group, said: “Bespoke investment services enable advisers and their clients to access a wider range of investment vehicles, and there is growing demand from clients to be able to invest in ETFs and investment trusts as well as directly in equities, bonds and AIM shares.
“Advisers need to be careful, however, when they select providers of third-party services. Providers clearly need to have the research capabilities and scale to be able to respond to calls for more choices, which is a key driver of demand for bespoke investment services.”
-Ends-
Capital at risk. The value of investments and the income from them can go down as well as up and you may not get what you originally invested. Past performance is not a reliable indicator of future performance. The information contained in this release is based on our current understanding of HMRC tax regulations in the UK. Tax treatment depends on your individual circumstances and may be subject to change in the future. This information should not be taken as financial advice or recommendation. The registered address of Rathbones Group Plc is 30 Gresham Street, London EC2V 7QN.
Notes to Editors
• Rathbones commissioned independent research agency PureProfile to interview 100 UK IFAs and financial planners including 75 who currently offer bespoke investment management/discretionary fund management services.
• Rathbones’ bespoke investment management is an actively managed service backed by extensive research capabilities and designed to deliver consistent performance. By reacting quickly to changing market conditions, its advisers can help to protect and grow clients’ wealth.
• It is typically designed for clients that have £300,000 or more to invest. Rathbones Investment Committee and Asset Allocation Committee meet regularly to review and oversee the investment portfolio management process and the assets in which we invest.
For further information, please contact:
Rathbones
press@rathbones.com
Tessa Curtis
Director of Communications & Corporate Affairs
Tessa.curtis@rathbones.com
07833 346238
Madhu Kalia
Associate Director
Madhu.kalia@rathbones.com
07825 596302
Perception A
Phil Anderson
phil@perceptiona.com
07767 491519