Multi-asset  

Two thirds of advisers opt for multi-asset approach

Two thirds of advisers opt for multi-asset approach

Two thirds of advisers use a multi-asset approach when advising a client on an income portfolio, research by Royal London Asset Management has found.

The company found 67 per cent of advisers preferred this approach while 26 per cent preferred to build an individual portfolio.

Most advisers who took part in the survey also said they thought a multi-asset fund’s ability to deliver long-term client aims was more important than benchmark relative returns, with 86 per cent saying this was the case.

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Phil Reid, RLAM’s head of wholesale, said: “This research very much confirms our conversations with clients around their challenges in identifying a well-managed multi-asset solution.

“Clients are turning to multi-asset funds for a multitude of reasons. Our research has found that fund performance and robust process are ranked by advisers as the most important considerations when selecting a multi-asset fund.

“Therefore, the ability of any multi-asset fund to meet clients’ long-term needs is key.”

RLAM’s research also found 48 per cent of advisers favoured an increased in use of both passive and actively managed funds over the course of the next year.

The company also asked advisers to rank which assets classes they were most worried about over the next year, with government bonds coming out top.

UK equities was second while high yield bonds and overseas equities gave advisers the least concern.

RLAM surveyed 56 investment advisers in the fourth quarter of 2016.

damian.fantato@ft.com