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Brand least important factor in multi-asset fund selection

2 July 2019

Advisers are opting for performance over brand when it comes to choosing a multi-asset fund manager, new research from Seneca Investment Managers has revealed. 

Nearly three quarters (74%) of advisers cited investment performance as the leading factor, while a well-known brand name was considered the least important factor, with just 37% of the vote.

Fees ranked second place, with 54% of advisers citing this feature as important, while increased diversification was also regarded as a key consideration for over half (52%) of advisers.

David Thomas, chief executive, Seneca Investment Managers, said of the findings: “Size and brand can sometimes be an unnecessary distraction for intermediaries when looking to provide themselves and clients with reassurance and can often get in the way of delivering real value to clients.

“Our research highlights how advisers are increasingly focused on the issues that matter most to their end clients when selecting a manager. Tangibles such as investment track record and the investment process are now more important than intangible factors associated with a manager’s size or brand.”

Looking ahead, advisers surveyed appeared bullish on multi-asset strategies, with 60% planning to steer more of their client’s money to managers who specialise in multi-asset strategies. In contrast, just 1% of advisers surveyed said they intend to reduce their allocation to multi-asset funds, while 30% said they expect to maintain their allocation at current levels.

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