Sentiment is higher amongst advisers who are outsourcing their asset allocation and investment decisions, according to research by JP Morgan Asset Management.
The firm’s new Adviser Prosperity Index has revealed that those advisers who are outsourcing asset allocation are doing so to de-risk their businesses and create more time to devote to other parts of their business.
JPMAM head of adviser solutions Jane Nicholls says: “Average sentiment is higher among advisers who are proactively de-risking their business models by outsourcing asset allocation and investment decisions, embracing denaturalised investment propositions that allow them to focus back on core areas like financial planning and meeting client objectives.”
However, the findings also show that 18 per cent of those polled described their prosperity as “declining” with a further 23 per cent using the term “surviving”. One-third labelled themselves as “flourishing”.
Of this declining segment, 19 per cent have slimmed down their businesses and continue to do so. It was also discovered that this segment has the fewest highly qualified advisers, with just 14 per cent at QCF 6, and tends to charge the lowest post-RDR ongoing charges.
At the the other end of the spectrum, 33 per cent of advisers describe themselves as “flourishing”. One-third of this group have managed to expand their business, while this segment benefits from the highest fee or commission income.
The survey polled 251 investment advisers and was carried out between 8 and 17 May 2013.