Growing demand for bespoke investment services is being fueled by clients of financial advisers seeking a greater choice of investments for their portfolios, new research from Rathbones Group.
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 fueling 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.”
