UK financial advisers expect increase in onshore bond business

As clients demand more medium to long-term investments

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Independent financial advisers believe that the onshore bond market in the UK is set to grow, research by HSBC Life has found.

The life insurer surveyed 100 IFAs and found 29% believe their firm will increase sales of onshore investment bonds over the next year as clients focus on longer-term solutions.

The study also found onshore investment bonds are becoming increasingly popular in the adviser market with the vast majority (90%) saying they recommend onshore investment bonds to clients, with 19% recommending the products regularly to meet the investment needs of their clients.

More than two-in-five (43%) said they believe the ongoing pandemic is driving client demand for longer-term investment solutions.

Long-term investments

Mark Lambert, head of onshore bond distribution at HSBC Life (UK), said: “Onshore bond demand is driven mainly by the three I’s of investment, income and inheritance which are core considerations for advisers and their clients in the financial planning process. Our study has shown that many advisers would agree with this.

“Demand for medium to long-term investments is a major issue for advisers and their clients currently and ultra-low long-term interest rates are clearly a contributing factor. Advisers have moved quickly to adapt to the investment challenges of the coronavirus and see the clear client benefits in longer term investment solutions.

“Our priority is to offer advisers and their clients investment choice, transparency and value supported by the highest levels of service. It is extremely encouraging that advisers appear so optimistic about the future of the onshore bond market and we share their views about future growth.”

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