Adviser surveys

Advisers are prioritising diversification in client portfolios, boosting allocations to alternatives and emerging markets.

Over the past 12 months, 36% of advisers increased their exposure to alternatives and 32% to emerging markets, with the survey indicating this upward trend is likely to continue into next year.

There is a growing sense of disruption with 60% flagging geopolitical risk as a major source of uncertainty this year. Even more (68%) cite technological change as a source of market disruption, reflecting the rapid impact of AI.

For the first time, the survey asked advisers about the impact of rising public debt, with six in ten expecting significant disruption as a result.

Ahead of the UK Budget on the 26 November, advisers were concentrating planning efforts on the areas most exposed to potential tax changes.

One in three advisers have been preparing clients for possible rule changes around tax-free pension withdrawals. Inheritance tax (IHT) planning has also been a priority, with 27% of advisers reporting that they have reviewed estate planning strategies with their clients.

There is a marked ageing trend in the average age of advisers’ client bases: 38% of advisers now say most of their clients are 65 or over, compared to just 25% last year.

Intergenerational wealth transfer is firmly on the radar, but only a small minority have specific approaches in place for younger or female clients. This suggests a missed opportunity to build long-term, multi-generational relationships.

Since the survey began tracking adviser engagement with AI, there has been a notable shift in advisers’ willingness to incorporate it into their businesses.

Nearly half of advisers are already using AI in their businesses, up from just over one in five last year. Only 8% now say they never expect to use AI within their advice process, down from 27% in May 2023.