Most advisers have a centralised investment process and use model portfolios, according to research by Equifax Touchstone.
The survey found 82 per cent of intermediaries have a centralised investment process while 76 per cent used model portfolios.
Where advisers use model portfolios, 70 per cent do so for more than half of their investment business.
The findings also showed the adoption of centralised investment processes and model portfolios varies with the size of the firm.
Only 66 per cent of advisers in a firm with less than five advisers use model portfolios in contrast to 83 per cent from firms with more than 50 advisers.
John Driscoll, director at Equifax Touchstone, said: “Centralised processes and the use of model portfolios ensure that a client’s attitude to risk is reflected and maintained on an ongoing basis, as these portfolios are managed according to strict risk criteria, and re-balanced regularly.
“We’re witnessing a shift to a more structured investment process, with centralised processes a key foundation for investment advice.
“This approach helps strike the right balance between risk and return, particularly important in a world of increased market volatility.
While some investors are turning to passive investments to reduce costs, the survey showed advisers still value active investment vehicles.
Passive investing plays a part for 82 per cent of intermediaries, but the majority invest 25 per cent or less of their investment business in passives.
Only 11 per cent of advisers allocate more than half to passive funds.
The survey was carried out this month with a total sample size of 141 investment advisers.
damian.fantato@ft.com
