The survey covers 100 UK independent financial advisors (IFAs) and financial planners, including 75 who currently offer investment management/discretionary fund management services. 

New research from UK wealth manager Rathbones shows that the growing demand for investment services is being fuelled by clients of financial advisors seeking a greater choice of investments for their portfolios.

The study, based on responses from financial advisors across the UK, found that demand from clients for a wider range of investment vehicles and increased flexibility is driving growth in bespoke services.

Access to exchange-traded funds (ETFs) is the main reason identified by the study, with all advisors questioned agreeing that it is a major reason behind the growth. But it also found strong support for access to investment trusts, direct equities and bonds.

More than nine out of 10 (91 per cent) of advisors agree that access to investment trusts is a key reason for the growth of bespoke services, with 5 per cent disagreeing, the survey reveals. Around 95 per cent agree that access to direct equities and bonds is a key reason for clients moving to bespoke services, with 5 per cent disagreeing.

Almost all (97 per cent) agree that access to the Alternative Investment Market (AIM) shares and their potential tax benefits is fuelling growth in bespoke services, with just 3 per cent disagreeing or not having a view.

Advisors see opportunities in the increasing availability of Long-Term Asset Funds and private market investments for high net worth clients. Around 93 per cent agree bespoke investment services are becoming more relevant to clients as a result.

“Bespoke investment services enable advisors 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,” Simon Taylor, head of strategic partnerships, Rathbones Group, said.

“Advisors 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,” he added.

Rathbones, which manages £109.2 billion ($144 billion) of assets of which £15.8 billion is managed by Rathbones Asset Management, commissioned research agency PureProfile to interview 100 UK IFAs and financial planners including 75 who currently offer investment management/discretionary fund management services.