Adviser Attitudes: Strengths
Client-centric responsibilities have come out as the main thrust of what advisers consider their strengths, the CoreData research has shown.
An overwhelming majority of 86.9 per cent and 85.7 per cent rooted strong ability respectively in explaining investment concepts to clients, and understanding clients’ risk appetite.
Adviser confidence in these skills appears to have increased, as a higher percentage cited both abilities as a strength compared to last year.
Adrian Murphy, associate partner of Ayrshire-based IFA Murphy Financial, said: “The biggest thing clients value is face-to-face time with advisers. I think that is probably because there has been more focus on it pushed by the FSA and RDR.”
A low 22.9 per cent answered “yes” to tactical asset allocation being a strength, while three in five advisers saw weakness in fund manager selection and strategic asset allocation.
The findings also revealed respondents offered three dominant product areas – Isas, pensions and, unit trusts and Oeics.
Advisers providing ETF advice only made up 19.7 per cent of respondents, according to CoreData. And despite much lobbying in the sector, only 27.3 per cent of advisers were actively advising on investment trusts.
Mr Murphy explained tactical asset allocation was not a financial planner’s job but that of an investment manager, adding: “Making those individual decisions on ETFs and investment trusts is very hard if you are a small IFA without the resources to prove your decisions.”
Nearly half of advisers had from £0 to less than £10m of funds under advice and a quarter held between £10m and £20m.
There was a notably smaller number in the range £20m to £50m, with a slight kick up beyond the £50m mark.
Murphy Financial had approximately £35m funds under advice.
He said the research showed there would be huge consolidation because advisers could not survive on those low volumes.