• Peace of mind is reason for 54% of investors who receive financial advice to seek adviser expertise.
• Lack of financial expertise motivates just over a third (35%) of investors who receive financial advice to use an adviser.
• 17% of investors who use an adviser say they do so because they don’t have time to do it themselves.

Over half (54%) of investors who use an adviser do so for peace of mind according to a new report from Hymans Robertson Investment Services (HRIS). This is in contrast to just over a third (35%) who use an adviser for their financial expertise and less than a fifth (17%) because they don’t have time. This prioritisation of peace of mind is in line with the importance that regulations such as The Consumer Duty place on soft factors and brings into sharp focus the need for advisers across the industry to not only focus on how they deliver value for money, but also how they demonstrate it, claims HRIS.

HRIS, a leading DFM, has launched its latest report, Hymans Robertson Investment Services: Consumer Research 2023, to help advisers understand investor attitudes of those with investable assets over £300k. It looks at a number of topics including ‘value’ and relevant factors that could be used to assess it.

When asked about which aspects of advice investors placed most value on, two thirds (66%) of respondents said that investment returns are critical and just over two-fifths (44%) attribute value to having their tax managed efficiency. However, the report also indicates that value placed on a wider number of soft factors is equally, if not more important including things such as the ability to plan how they will attain their financial goals, which half (50%) said is a benefit of using an adviser.

Advisers play a crucial role in supporting individual clients, the value of which is often accentuated in difficult times, where there may be an increased temptation for investors to fall into the trap of ‘selling low’ and ‘buying high’. This is reflected in the report by the low number of respondents (4%) who said, following recent market volatility, they are looking to disinvest entirely, showing most seem to be retaining a longer-term outlook.

The report also looks at the role that communications from advisers plays in providing value for investors. It found that nearly two-fifths (37%) said they would like a summary of key points added to the communications they receive. Just under a third (32%) wanted information with more forward-looking views and opinions and a quarter (25%) wanted less jargon.

Commenting on the findings and the implications for advisers William Marshall, Chief Investment Officer at Hymans Robertson Investment Services (HRIS) says:

“It’s hard to think of a more challenging backdrop than the one we’ve experienced in recent times. As we know, when market volatility increases our appetite for risk tends to decrease and vice versa. It is at these points that advisers play a crucial role for their individual clients, by providing the peace of mind and confidence required to maintain a longer-term outlook. This is shown by the small number of individuals who say they will divest entirely (4%).

“Our research showed many individuals are now relying on their adviser because of the additional value they get from the personalised service they receive. This combined with the provision of information and technical expertise offers a mix that gives peace of mind – an almost unquantifiable value added.

“As regulations like consumer duty focus more on getting firms to show how they provide value for money, developing a clear understanding of the parts of their service that clients value, will be very important for advisers. Firms will be in a strong position if they’re able to show how different parts of their service, such as their provision of regular updates, or information which is easy to understand and has clear key facts with added insight, gives clients the clarity and peace of mind they appreciate.”