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North-South investment advice divide

23 September 2018

Investment behaviours vary from North to South of the country, according to new research by Aegon.  

While official statistics have underlined a North-South divide when it comes to wealth and income, Aegon’s research also showed investment strategies were also linked to wealth.

Advisers in the wealthier South were found to place a higher percentage (35%) of assets in bespoke portfolios created using single asset funds, compared to 21% of those in the North.

In contrast, investors in the North were more likely to place a higher proportion of assets (51%) in multi-placed funds, compared to their Southern counterparts (34%).

Meanwhile, confidence in European equities was found to be much lower among those in the South, with just 2% of advisers predicting those to perform well, while 12% of advisers in the North expected those to generate strong returns. The number of advisers in the South who expect cash to be the worst performing asset over the next 12 months was double compared to the North, which Aegon said highlighted the increased nervousness around Brexit in the South of the country.

Nick Dixon, investment director, Aegon, said of the findings: “The contrast shown in our research demonstrates that advisers are tailoring investment recommendations to suit needs of clients in their location. The North-South political and economic divide is widely known and it’s interesting to see this impact investment strategies that advisers are opting for, with single asset funds and DFM portfolios attracting a greater share of assets in the South, while multi-asset is favoured in the North of the country.

“We believe this dichotomy is driven by three features of difference between the North and South of the UK – perceptions of Brexit, wealth and affordability and risk appetite.”

Professional Paraplanner