The vast majority (97%) of advisers expect demand for bespoke portfolios managed by third party wealth managers to rise, driven by the increasing complexity of navigating issues around family inheritance, says Rathbones Group.
A new study by the wealth manager found advisers are finding it increasingly challenging to manage larger client portfolios and deliver growth and tax efficiency to their clients, following changes to tax relief on pensions and estates.
Two thirds (65%) say portfolio management has become more difficult, while just 29% said it has become easier. A contributing factor is the growing complexity in decumulation strategies and estate planning as a result of last year’s Autumn Budget.
More than nine in 10 (93%) advisers say that it is driving increased interest in bespoke investment services.
Simon Taylor, head of strategic partnerships and platforms at Rathbones, said: “Changes in last year’s Budget to IHT are having a major impact on advisers and their clients with large investment portfolios, with advisers finding managing both growth and tax efficiency more challenging as a result.
“Furthermore, the FCA’s thematic review on retirement income advice, published in March 2024, is adding increased impetus for adviser businesses to think carefully about investment propositions for their clients, resulting in increased interest in bespoke services.”
Rathbones’ study found most advisers who offer bespoke investment services are more likely to do so for decumulation (59%), while 41% are more likely to offer them during the accumulation phase.
Additionally, 39% of advisers are more likely to offer bespoke services to those clients approaching retirement, while 15% do so for recently retired clients and 5% for those who have been retired for some time.
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