One in three (34%) IFAs believe that having access to a broader range of cash deposit products/rates on wrap platforms would help them enhance their value proposition to clients, according to new research1 from Investec Specialist Bank.
Currently, more than three in four (78%) IFAs spend 10% or less of their time managing the cash element of a typical portfolio. Indeed, one in ten (11%) spends no time at all on this.
The research reveals that more than one in five (22%) IFAs believe having access to a wider range of cash products on wrap platforms would increase the total assets under their advice, with 19% suggesting it would improve the accuracy of asset allocation.
Despite IFAs recognising the value of a broad range of cash deposit products/rates, on average they spent just 6.25% of their time on managing the cash element of a typical portfolio.
Lionel Ross, Investec Specialist Bank, commented:
“It is reassuring to see that IFAs understand the importance of being able to offer clients a broad range of cash deposit products. However, it is also concerning to see that some spend no time at all on managing the cash element of a client’s portfolio.
“The role of cash deposit products/rates on wrap platforms will change substantially over the next few years. It is up to those IFAs to spend more time on this element of a portfolio to potentially gain a significant advantage for their client.”
Proportion of IFAs surveyed who use a wrap platform for client investments
- It would enhance my value proposition to my clients: 34%
- I could offer a better service to those clients who are more risk averse: 29%
- It would increase the total assets under my advice: 22%
- It would not benefit my clients: 21%
- It would improve the accuracy of asset allocation: 19%
