This is compared to 35% who held this view for 2013 and an 11 fold increase from 2011, when only 7% of IFAs expected to see an improvement.
The 'Voice of the Adviser' study from Matrix Solutions in association with Blue & Green Tomorrow, surveyed nearly 300 IFAs from across the UK and asked advisers whether they expected the overall economic conditions in the UK to be better or worse in 12 months’ time. The number of IFAs who expected the economy to worsen dropped to 4%, compared with its peak of 55% in 2011.
The report also showed that IFAs have an optimistic outlook for the future of the advisory market in particular, with nearly three quarters (73%) expecting to see an increase in client numbers this year, compared to 51% in 2012. Those expecting to see a decrease has fallen from 27% to just 7%.
The report, also found that 82% of IFAs said they need to speak to fewer than 10 (7.2) prospects to win a new client. In terms of method of recruiting new clients, word of mouth and recommendation remain dominant with 84%. 76% of IFAs also said their clients ask them about ethical advice.
Ian Beaumont, CEO at Matrix Solutions said:
“This research is further evidence that confidence is returning to the market. Before RDR came in, many advisers were worried about the effect it would have on client numbers. However, with the majority of advisers expecting to see an increase in client acquisition this year, it seems that RDR has been less of a disruption than initially anticipated. This, coupled with advisers’ positive outlook for the economy, shows that they see the financial advisory market as continuing to thrive in 2014.”
Simon Leadbetter, founder of Blue & Green Tomorrow said:
“It is encouraging to see that advisers are more confident about the economic recovery. However, this new found confidence should be treated with caution. The recovery is fragile and by no means certain. Advisers should therefore maintain a watching brief over the state of the industry and work to make their propositions relevant in the market place.”
Alex Blackburne, editor of Blue & Green Tomorrow said:
"The fact that 76% of advisers get requests for sustainable, responsible and ethical investment options from their clients suggests the problem is one of supply, not demand. We would encourage IFAs to take a good look into the range of different sustainable, responsible and ethical funds available in order to offer their clients advice that is informed, comprehensive and meets what investors clearly want."
Julian Parrott, partner at Ethical Futures said:
"I’m pleased to see the growing trend in enquiries about ethical and sustainable investment. The positive note sounded by advisers about future prospects bodes well and perhaps reflects recent figures about economic growth in the UK and ‘post-RDR’ optimism.”
