Client requests are 'driving' adviser investment decisions

Client requests have a bigger influence on adviser investment decisions than market conditions, new research from Downing Fund Managers has revealed.

Its study among advisers found 76% say client requests are the biggest reason for them to seek new investments ahead of 65% who say changes in market conditions influence moves to new investments and 63% who cite economic changes.

The independent research was conducted for Downing Fund Managers among 46 general practitioner, specialist and hybrid advisers during July 2024.

Just over half (52%) say they change to new investments because of performance problems with existing recommendations while 48% say they are influenced by the need for higher returns. Around two-fifths (39%) say they change to new investments due to regulatory updates.

Administrative problems are a reason for a switch for around a quarter (24%), while innovative features in a new investment prompt changes for just over a fifth (22%).

The research, carried out for the Downing Fox Fund of Funds range found advisers themselves are more influenced by industry experts than clients. 61% say industry experts have the biggest impact for them ahead of 54% who say client demands are the biggest reason followed by 37% who say recommendations from other advisers influence them.

By contrast, fund managers are the biggest influence for 35%, while a fifth (20%) say financial influencers have an impact on their decision-making.

There is more agreement on how advisers prefer to receive updates on funds – 91% want email updates while 70% choose webinars and online presentations. Just 35% prefer to receive updates at industry conferences and 33% through professional publications. Only 11% prefer to receive updates through LinkedIn.

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.”