Financial advice clients increasingly want access to direct investments in ETFs, investment trusts, equities, bonds and AIM shares, according to research from Rathbones Group.
The wealth manager said growing demand for bespoke investment services is being fuelled by clients of financial advisers seeking a greater choice of investments for their portfolios.
Rathbones commissioned agency PureProfile to interview 100 UK IFAs and financial planners, including 75 who currently offer bespoke services.
All advisers questioned pointed to access to ETFs as a major reason behind the growth, 91% of advisers pointed to investment trusts, 95% agreed access to direct equities and bonds is a key reason for clients moving to bespoke services, while 97% agreed that access to AIM shares and their potential tax benefits is fuelling this growth.
See also: Former Hargreaves veteran Lee Gardhouse returns to industry with Moai Wealth
The researchers also found advisers see opportunities in the increasing availability of long-term asset funds and private market investments for high-net-worth clients. Around 93% of IFAs quizzed agreed bespoke investment services are becoming more relevant to clients as a result of this.
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.”
See also: Majority of advisers interested in specialist IHT support
