Multi-asset funds are the investment solution most used by financial advisers. They are used alongside model portfolios, as components within model portfolios and as a standalone product.

In our survey for this report, we found that three quarters of financial advice professionals use multi-manager or multi-asset funds with 28% expecting to increase their allocation of client assets to these products in the next three years. In May 2023, the Investment Association reported that 17% of UK retail funds were invested in mixed asset funds.

Despite the important position multi-asset funds have in the retail wealth market, little is known about how financial advisers use these products. This report, Multi-Asset Distribution Dynamics forms part of our on-going research into financial advice businesses and the investment solutions used by those firms, and seeks to answer the question of how financial advisers use these products in practice.

Who is the report for?

• Investment managers: The research will support product development and distribution strategy based on a detailed understanding of the ways financial advisers use multi-asset funds.
• Discretionary fund managers: A growing number of DFMs are unitising MPS, creating multi-asset funds. The report will inform product development and distribution strategy while considering the scale of this trend.
• Financial advice businesses: some large financial advice businesses are offering their own multi-asset products. The report provides competitive benchmarking on multi-asset products in practice.

This report is for anyone who wishes to understand the ways that financial advisers use multi-asset funds in client portfolios. The results will inform strategic planning, market assessments and board reports.

Methodology

The report is based on both quantitative and qualitative research as well as our insight into the financial advice market.

• Online survey of 200 financial advisers, representing a range of firms:
  • 18% work in firms with over £250m in assets under advice
  • 49% of their clients are fully employed, 20% phasing into retirement and 31% are fully retired.
  • 23% hold discretionary permissions
• In-depth phone interviews with 10 employees of financial advice firms representing a range of roles and responsibilities.

You can read more about the report by completing the form and downloading the sample report. Or get in touch at enquiries@nextwealth.co.uk to purchase a full copy.