SWTICH TO BESPOKE BOOSTING ADVISER PROFITABILITY, STUDY SHOWS
Switching to bespoke investment services for clients is boosting adviser profitability, new research* from Rathbones Group, one of the UK’s leading wealth management firms, shows.
The study with advisers across the UK, including those currently offering bespoke investment services, found that almost all advisers surveyed (95%) say their company’s overall profitability has improved, with 97% reporting that they can now take on more clients as a result.
All advisers questioned say clients were ‘generally happy’ when they offered a bespoke service to them, with 35% saying most clients were very happy. The study also found that advisers were almost equally divided over whether it was difficult to introduce a third-party investment manager service into their business. Just over half (51%) said their company did not find it difficult to do this, with 48% saying it was difficult.
There are other factors to consider beyond profitability - the study found that 85% of advisers say their relationship with clients improved after introducing a third-party service, with nearly a quarter (24%) saying it had become much stronger. The number of meetings with clients also increased, on average, for 85% of advisers questioned, with nearly one in five (19%) reporting a dramatic increase.
Simon Taylor, Head of Strategic Partnerships and Platforms, Rathbones, said: “Moving clients to a bespoke investment service needs to be carefully considered by advisers, with a wide range of factors to look at.
“The advantages of making the switch are, however, clear from the research, with clients benefiting in terms of improved relationships, and advisers seeing increases in profitability and being able to take on more clients. We only expect the demand for advice to increase, as more clients move towards and into retirement. This strengthens the need for adviser firms to build partnerships with discretionary fund management firms.”
Around nine out of 10 (89%) said the risk/return profile of clients’ portfolios also improved after switching to third party services, with 29% reporting a dramatic improvement.
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Capital at risk. The value of investments and the income from them can go down as well as up and you may not get what you originally invested. Past performance is not a reliable indicator of future performance. The information contained in this release is based on our current understanding of HMRC tax regulations in the UK. Tax treatment depends on your individual circumstances and may be subject to change in the future. This information should not be taken as financial advice or recommendation. The registered address of Rathbones Group Plc is 30 Gresham Street, London EC2V 7QN.
Notes to Editors
• Rathbones commissioned independent research agency PureProfile to interview 100 UK IFAs and financial planners including 75 who currently offer bespoke investment management/discretionary fund management services.
• Rathbones’ bespoke investment management is an actively managed service backed by extensive research capabilities and designed to deliver consistent performance. By reacting quickly to changing market conditions, its advisers can help to protect and grow clients’ wealth
• It is typically designed for clients that have £300,000 or more to invest. Rathbones Investment Committee and Asset Allocation Committee meet regularly to review and oversee the investment portfolio management process and the assets in which we invest.
* Rathbones commissioned independent research agency PureProfile to interview 100 UK IFAs and financial planners including 75 who currently offer bespoke investment management/discretionary fund management services. For questions on methodology contact Perception A.
For further information, please contact:
Frances McNab
Press Office Senior Executive
Frances.McNab@rathbones.com
07585 981 924
Phil Anderson
phil@perceptiona.com
07767 491519