Demand for bespoke investment services is rising, as financial advice clients seek broader access to investment options, according to new research from UK wealth manager Rathbones Group.
According to the study based on responses from financial advisers across the UK, growing client appetite for greater investment flexibility is fuelling the shift toward tailored portfolio solutions.
One driver behind this trend is clients’ desire for access to a range of investment vehicles, including ETFs, investment trusts, direct equities, bonds and alternative investment market (AIM)-listed shares. According to the research, advisers think this demand is reshaping the way wealth services are delivered.
ETFs stood out as the single most important factor, with 100% of advisers surveyed identifying them as a major reason behind the rise in bespoke services. 91% of advisers cited access to investment trusts as a key motivator, while 95% pointed to the value of offering direct equities and bonds.
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AIM shares, known for their potential inheritance tax benefits, were also highlighted, with 97% of advisers agreeing that demand for access to these assets is helping drive bespoke service growth.
The increasing availability of Long-Term Asset Funds and access to private markets for high-net-worth individuals is seen as another avenue of opportunity in the bespoke space, according to the findings.
With 93% of advisers agreeing that tailored investment services are becoming more relevant to their clients, the findings suggested that flexibility, tax efficiency and choice are becoming central to modern portfolio construction.
Simon Taylor, head of strategic partnerships, Rathbones Group, commented: “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.”
