North-South divide shapes adviser investment decisions

By Michael Klimes

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Sep 19, 2018

New research from Aegon has revealed a North-South divide in the way advisers make their investment decisions.

It finds the proportion of assets advisers are choosing to place in different types of investment strategies is also linked to levels of affluence.

Advisers in the wealthier South place a higher proportion, 35 per cent, of assets into bespoke portfolios created using single-asset funds, compared to 21 per cent in the North.

Meanwhile, a higher proportion of assets in the North, 51 per cent, are put in multi-asset funds compared to 34 per cent in the South.

Amid falling investment confidence as a result of Brexit uncertainty European equities are predicted to perform well by just 2 per cent of advisers in the South, compared to 12 per cent of advisers in the North.

Double the number of advisers in the South, 28 per cent, expect cash to be the worst performing asset over the next 12 months compared to 14 per cent in the North.

Aegon investment director Nick Dixon says the contrast shown in the research demonstrates advisers are tailoring investment recommendations to suit needs of clients in their location.

He adds: “The North-South political and economic divide is widely known and it is interesting to see this impact investment strategies that advisers are opting for, with single-asset funds and discretionary fund manager portfolios attracting a greater share of assets in the South, while multi-asset is favoured in the North of the country.

“We believe this dichotomy is driven by three features of difference between the North and South of the UK – perceptions of Brexit, wealth and affordability, and risk appetite”.

The research was carried out by Opinium on behalf of Aegon among 205 UK IFAs during August this year.

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