Client requests have a stronger influence on advisers’ investment decisions than market conditions, according to research from Downing Fund Managers.
In a study conducted among advisers, 76% indicated that client demands are the primary reason for seeking new investments, compared to 65% who cited market changes and 63% who mentioned economic shifts.
Performance issues with existing recommendations prompt 52% of advisers to make changes, while 48% are driven by the need for higher returns.
Regulatory updates influence 39%, with administrative challenges prompting changes for 24%, and innovative features in new investments swaying just over 22%.
The Downing Fox Fund of Funds research also shows advisers are more influenced by industry experts than by clients, with 61% citing experts as a primary influence, ahead of the 54% driven by client demands and 37% influenced by fellow advisers’ recommendations.
Fund managers sway 35% of advisers, while 20% consider financial influencers.
On receiving fund updates, 91% of advisers prefer email communications, 70% opt for webinars and only 35% value industry conferences.
Professional publications are chosen by 33%, while just 11% favour LinkedIn as a source for updates.
Simon Evan-Cook, manager of the Downing Fox Funds says: “This is some intriguing data to dig into. It’s unlikely that advisers are recommending a product simply because one client has mentioned it, but it would be interesting to know if several clients asking about a product sparks advisers to investigate more deeply.
“The data shows advisers are less influenced by conditions in the market or the economy, which suggests a healthy and welcome focus on financial planning and long-term investing.”
