There is a growing demand for bespoke investment services as financial advisers’ clients increasingly seek a greater choice of investments for their portfolios, research from Rathbones Group has found.

Its study of UK-based financial advisers showed that client demand for a wider range of investment vehicles and greater flexibility was fuelling growth in bespoke services.

All survey respondents agreed that access to exchange-traded funds (ETF) was a ‘major reason’ behind the growing demand.

It also found there was strong support for access to investment trusts, direct equities and bonds, and AIM shares.

More than nine in 10 (91 per cent) advisers felt that access to investment trusts was a key reason for the growth of bespoke services, while 5 per cent disagreed.

Meanwhile, 95 per cent believed access to direct equities and bonds was a major driver, and 5 per cent disagreed.

Almost all (97 per cent) agreed that access to AIM shares and their potential tax benefits was fuelling demand for bespoke services.

Advisers also saw opportunities in the increased availability of long-term asset funds (LTAF) and private market investments for high net worth clients, with 93 per cent stating bespoke investment services were becoming more relevant as a result.

“Bespoke investment services enable advisers and their clients to access a wider range of investment vehicles, and there is growing demand from clients to be able to invest in ETFs and investment trusts as well as directly in equities, bonds and AIM shares,” stated Rathbones Group head of strategic partnerships, Simon Taylor.

“Advisers need to be careful, however, when they select providers of third-party services. Providers clearly need to have the research capabilities and scale to be able to respond to calls for more choices, which is a key driver of demand for bespoke investment services.”

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