View more on these topics

Nine out of 10 advisers face administration burden, says Skandia

88 per cent of financial advisers consider rebalancing client portfolios once a year but only 11 per cent have the relevant discretionary management experience to do so without client approval, according to a survey commissioned by Skandia.

According to a survey of 500 financial advisers, 88 per cent of advisers recognise the need to rebalance a client portfolio on an annual basis. Of these, a fifth say they would evaluate the portfolio a few times a year.

However, of the 88 per cent only 11 per cent have the discretionary fund management status necessary to rebalance a portfolio. This leaves nine out of ten advisers who must seek client approval and potentially incur heavy administration prior to rebalancing their client’s portfolio.

Skandia have launched a new range of risk rated funds which match the expected volatility of different investor risk profiles. These funds are automatically rebalanced to make sure the asset allocation remains in line with the client’s agreed attitude to risk. The Company says this removes the need for an adviser to seek written approval from the client prior to rebalancing a portfolio.

According to the survey, 69 per cent of advisers say they would consider investing some of their clients’ entire investment amount in a risk rated fund. Fifty four per cent say they would certainly invest at least half of their client’s money into a risk rated fund.

Skandia head of investment marketing Graham Bentley says: “Most advisers face a real dilemma when it comes to portfolio rebalancing. When they decide a portfolio needs rebalancing to a new asset allocation most advisers have to write to their clients to get their approval first. Risk rated funds can be an ideal solution because they provide a client specific investment solution that does not incur the additional administration costs of rebalancing.”


Convertibles’ drive steers fund to £250m

The popularity of multi-asset multi-manager funds has helped the RWC global convertibles fund reach assets of over £250m since its launch 18 months ago.

Get your New Year off to a flying start

Ross Jackson, Senior Marketing Manager There’s no denying that these days we expect things quickly. You might have noticed it first-hand during the flurry and rush of the Christmas period. The fact is that in a world of smartphones, social media and click and collect, most clients expect to get an instant response and a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment