More than half of IFAs (55%) said that they were drawn to the best-selling asset class, a considerable increase on 2011 when only 17% selected this as an important factor in their decision making.
The findings come from Legal & General Investments’ annual What Matters Investment Index which aims to investigate the views of the IFA community, and track how sentiment and behaviour changes over time.
Overall, the results showed that the fund manager remains the most important factor to IFAs when choosing a new investment, with almost two thirds (64%) rating the manager. This is a small decrease from 2011 when the figure stood at 66%.
Another factor important to the IFA community is the investment provider, which remains a key influencer in portfolio decisions, with 58% highlighting that choosing a provider they are ‘comfortable with’ is essential. This is small increase on the 56% who said the same in 2011.
Simon Ellis, Managing Director, Legal & General Investments, said:
“In its second year this index is an important barometer of IFA views and sentiments, and the change year on year. It is no surprise to see that both fund manager and investment provider remain high on the scale of importance for IFAs.
“Equally revealing is the movement of IFAs to the best-selling asset classes, with advisers possibly seeking safety in numbers. The increase in “sales momentum” as an important factor is somewhat disconcerting- it could suggest that portfolio modelling is becoming more homogenous, or that fashions are influencing how funds are recommended.
"What is clear from the survey and industry stats is that at a time of significant market volatility, strong brands and heritage are helping IFAs in navigating murky economic waters on behalf of their clients.”
