Growing demand for bespoke investment services is being fuelled by clients seeking a greater choice of investments for their portfolios, according to advisers.
A study of 100 advisers by Rathbones Group found access to ETFs is the driving reason behind the growing demand. However, it also found strong support for access to investment trusts, direct equities and bonds and AIM shares.
According to the study, 91% of advisers said gaining access to investment trusts was a key reason for the growth of bespoke services, while 95% cited access to direct equities and bonds as a key driver. Meanwhile, nearly all (97%) advisers agreed that access to AIM shares and their potential tax benefits was boosting growth in bespoke services.
Rathbones said advisers also see opportunities in the increasing availability of long-term asset funds and private market investments for high-net-worth clients, with 93% agreeing bespoke investment services are becoming more relevant to clients as a result.
Simon Taylor, head of strategic partnerships at Rathbones Group, said: “Bespoke investment services enable advisers and their clients to access a wider range of investment vehicles and there is growing demand from clients to be able to invest in ETFs and investment trusts as well as directly in equities, bonds and AIM shares.
“Advisers need to be careful, however, when they select providers of third-party services. Providers clearly need to have the research capabilities and scale to be able to respond to calls for more choices, which is a key driver of demand for bespoke investment services.”
Main image: bia-w-a-PO8Woh4YBD8-unsplash
