Peace of mind is the leading reason investors use a financial adviser, a new report by Hymans Robertson Investment Services has shown.
According to the findings, 54% of investors use an adviser for peace of mind, while just over a third (35%) cite a lack of financial expertise as motivation for seeking financial advice and 17% do so because they don’t have time to do it themselves.
The report ‘Hymans Robertson Investment Services: Consumer Research 2023’ has been launched to help advisers understand investor attitudes of those with investable assets over £300,000. It explores a number of topics including ‘value’ and relevant factors that could be used to assess it.
Two thirds (66%) of respondents said that investment returns are critical and just over two fifths (44%) attribute the most value to having their tax managed efficiently. However, the report also showed that soft factors were just as important to investors, with half (50%) stating that the ability to plan how they will attain their financial goals was a key benefit of using an adviser. Only 4% of respondents said the recent market volatility has made them want to disinvest completely.
The report also shone a spotlight on investors’ communication needs, with 37% saying they would like a summary of key points added to the communications they receive and 32% wanted information with more forward-looking views and opinions.
William Marshall, chief investment officer at Hymans Robertson Investment Services, 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. This is shown by the small number of individuals who say they will divest entirely.
“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.”
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