Client requests have a bigger influence on adviser investment decisions than market conditions.
Research by Downing Fund Managers revealed 76 per cent of advisers said client requests were the biggest reason for them to seek new investments.
This was ahead of 65 per cent of advisers who said changes in market conditions influenced moves to new investments and 63 per cent who cited economic changes.
Some 52 per cent of respondents said they changed to new investments because of performance problems with existing recommendations, while 48 per cent said they were influenced by the need for higher returns.
Advisers also said they changed to new investments due to regulatory updates (39 per cent).
Administrative problems were a reason to switch for 24 per cent of advisers, with innovative features in a new investment prompting 22 per cent to change.
The research also found advisers were more influenced by industry experts than clients with 61 per cent saying they had the biggest impact, ahead of 54 per cent who said clients' demands were the biggest reason.
Fund managers were the biggest influence for 35 per cent of advisers while 20 per cent said financial influencers had an impact on their decision making.
Simon Evan-Cook, manager of the Downing Fox Funds, said: ““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.”
Elsewhere in the research, 91 per cent of advisers said they preferred email updates on funds while 70 per cent said they liked webinars and online presentations.
Just 33 per cent liked to receive updates through professional publications and only 11 per cent wanted updates via LinkedIn.
alina.khan@ft.com
