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Advisers split over outlook for 2018

Investment outlookFinancial advisers are split over the outlook for growth and defensive assets over the next 12 months, new research from Royal London Asset Management (RLAM) has revealed.

The survey of 61 financial advisers during November found that:

   -  Nearly half of advisers are concerned about the outlook for growth assets such as equities, commodities and property over the next twelve months, while just over half of the advisers surveyed are concerned about defensive assets such as bonds;
   -  The majority of the advisers surveyed said at least half their clients were focused on investing for growth. On average, 72% of an adviser’s clients were predominantly investing for growth;
   -  Just over two-thirds of financial advisers currently place client money in passive investments;
   -  Among those that don’t currently use passive funds or other instruments, only a quarter of these said they would begin to use these over the next twelve months;

On average, just 5% of advised clients had a preference for sustainable or ethical investing. However, one in ten advisers said that at least a quarter of clients had sustainable requirements.

Phil Reid, RLAM’s head of wholesale, said: “The active passive debate looks set to continue but as the results of this survey indicate, most advisers can see a place for both.

“When it comes to sustainability, the survey results suggest this is still an area for growth within the industry. When we speak to advisers, it’s clear that sustainable investing is becoming a key part of the investment process for many firms.”

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