Over half (54 per cent) of investors who use an adviser do so for peace of mind, according to a report from Hymans Robertson Investment Services (HRIS).
The research, published in Hymans Robertson Investment Services: Consumer Research 2023, found that just over a third (35 per cent) use an adviser for their financial expertise.
Less than a fifth (17 per cent) said they do so because they do not have time.
Hymans Robertson said this prioritisation of peace of mind is in line with the importance that regulations such as the consumer duty place on soft factors.
It also said it brings into focus the need for advisers across the industry to not only focus on how they deliver value for money, but also how they demonstrate it.
The survey asked 1,000 UK individuals with investable assets over £300,000 to help advisers understand investor attitudes.
It looked at a number of topics including ‘value’ and relevant factors that could be used to assess it.
When asked about which aspects of advice investors placed most value on, two thirds (66 per cent) of respondents said that investment returns are critical and just over two-fifths (44 per cent) attribute value to having their tax managed efficiency.
However, the report also indicated that value placed on a wider number of soft factors is equally, if not more, important including things such as the ability to plan how they will attain their financial goals, which half (50 per cent) said is a benefit of using an adviser.
William Marshall, chief investment officer at Hymans Robertson Investment Services, said: “Our research showed many individuals are now relying on their adviser because of the additional value they get from the personalised service they receive.
“This combined with the provision of information and technical expertise offers a mix that gives peace of mind – an almost unquantifiable value added.”
Hymans Robertson said advisers play a crucial role in supporting individual clients, the value of which is often accentuated in difficult times, where there may be an increased temptation for investors to fall into the trap of ‘selling low’ and ‘buying high’.
This is reflected in the report by the low number of respondents (4 per cent) who said, following recent market volatility, they are looking to disinvest entirely, showing most seem to be retaining a longer-term outlook.
Marshall said: “It’s hard to think of a more challenging backdrop than the one we’ve experienced in recent times.
“As we know, when market volatility increases our appetite for risk tends to decrease and vice versa.
“It is at these points that advisers play a crucial role for their individual clients, by providing the peace of mind and confidence required to maintain a longer-term outlook.”
The report also looked at the role that communications from advisers play in providing value for investors.
It found that nearly two-fifths (37 per cent) said they would like a summary of key points added to the communications they receive.
Just under a third (32 per cent) wanted information with more forward-looking views and opinions and a quarter (25 per cent) wanted less jargon.
Marshall added: “As regulations like consumer duty focus more on getting firms to show how they provide value for money, developing a clear understanding of the parts of their service that clients value, will be very important for advisers.
“Firms will be in a strong position if they’re able to show how different parts of their service, such as their provision of regular updates, or information which is easy to understand and has clear key facts with added insight, gives clients the clarity and peace of mind they appreciate.”
sonia.rach@ft.com
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