Almost all (97%) independent financial advisers expect demand to rise for bespoke portfolios managed by third party wealth managers, a new study has shown.
The research, from Rathbones Group, revealed this is largely due to the increasing complexity of navigating issues around family inheritance.
The study found advisers are finding it challenging to manage larger client portfolios, following changes to tax relief on pensions and estates.
Two out of three (65%) said portfolio management has become more difficult, while less than a third (29%) believed it has become easier.
A contributing factor identified by the study is the growing complexity in decumulation strategies and estate planning because of last year’s Autumn Budget.
Around 93% of advisers questioned said that it is driving increased interest in bespoke investment services.
Rathbones head of strategic partnerships and platforms, Simon Taylor, 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.”
Most advisers who offer bespoke investment services are more likely to do so for decumulation.
Around 59% questioned said they do so, while 41% said they are more likely to offer them during the accumulation phase.
In terms of timing, the study found 39% 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.
