Majority of advisers upbeat about UK economy in 2014

The latest BlackRock adviser survey has found that a huge proportion of UK advisers are upbeat about markets in 2014, although this optimism does not translate into more risk-taking by clients.

BlackRock’s Investor Pulse Adviser Survey found that 91 per cent of UK advisers surveyed were optimistic for the UK economy in 2014, more than the 87 per cent of advisers surveyed in Italy and 81 per cent from advisers in Germany.

The company surveyed 101 financial advisers in the UK, as well as 100 advisers in both Germany and Spain and 17,000 end consumers globally in its study.

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Alex Hoctor-Duncan, head of retail for Europe, Middle East and Africa at BlackRock, said the optimism from advisers was “encouraging”

He said: “As they review their clients’ asset allocations for 2014, the survey reveals there is likely to be a significant shift in portfolios as advisers look to help their clients take steps out of cash and seek simple investment solutions, which have a greater focus on the ‘outcome’, to help deliver their clients’ longer term investment goals.”

However, 57 per cent of the end investors surveyed by BlackRock in the UK, said that they were not willing to take any risks with their money, with a similar figure for Germany and Italy.

BlackRock estimated that British investors have 68 per cent of their savings and investments sitting in cash, which is more than German investors and significantly more than Italian investors.

The survey also highlighted the improvements in sentiment that investors gained from using a financial adviser.

Those using a financial adviser were considerably more likely to be positive about their financial future, at 58 per cent compared to 46 per cent for non-advised investors, feel more in control of their financial future, at 63 per cent to 47 per cent, and were confident in making the right savings/investment decisions, 69 per cent to 46 per cent.

Investors gave a vote of confidence for the quality of their financial advice as well, with 96 per cent saying they were happy with their overall financial plan and 94 per cent said the advice they were getting was good value for money.

Mr Hoctor-Duncan said it was encouraging to see the high satisfaction around advice adding it was an “endorsement of the advice model for the future”.