(PRWEB UK) 22 December 2013
New research by Prudential has found investors are increasingly seeking advice and using investment strategies designed to manage risk following a fundamental shift in attitudes since the 2008 financial crisis.
Its nationwide study among specialist investment advisers found that two-thirds (66 per cent) say their clients' behaviour has changed to become more cautious. The changes include investors being inclined to take more advice before making decisions on where to invest, and being more likely to invest in cautious balanced portfolios, multi-manager funds and absolute return funds.
Around a quarter of advisers (26 per cent) say the change in attitudes is reflected in clients taking more advice before making investments while 31 per cent say the major change they have experienced is people becoming more cautious and moving to more balanced portfolios. Around nine per cent of advisers say the biggest changes include increased use of multi-manager and absolute return funds to reduce risk.
The change in investment outlook is driven by clients' recent experience of the markets. Around 91 per cent of advisers say their clients' attitudes have changed fundamentally following the financial crisis of 2008 and the continued volatility since then.
Andy Brown, Investment Director at Prudential, said: "The experience of the past five years has clearly made its mark on investor attitudes with a definite shift towards a more cautious, balanced approach to portfolio construction.
"Advisers say their clients are taking more advice and making increased use of risk reduction and other strategies to address potential market volatility."
Not all clients are making increased use of risk reduction strategies though – around 15 per cent of advisers surveyed say the impact of the financial crisis has made many of their clients want to continue using active management, albeit more carefully.
The Prudential research shows that just eight per cent of advisers believe the economic and financial market situation since 2008 has not fundamentally altered investor outlooks.
Notes to editors
The information contained in Prudential UK's press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at http://www.pru.co.uk.
Research conducted among a nationwide sample of 210 investment advisers using an online survey on behalf of Prudential in November 2013.
Prudential plc is an international financial services group with significant operations in Asia, the US and the UK. Prudential serves more than 23 million customers and have £427 billion of assets under management. The company is listed on stock exchanges in London, Hong Kong, Singapore and New York.
Prudential UK is a leading life and pensions provider with approximately 7 million customers.