Consumer awareness driving demand for MultiManager funds

Financial advisers have forecast that sales of MultiManager funds relative to single manager funds are set to increase significantly, with growth being driven by consumer demand, according to research conducted by Skandia Investment Group (SIG).

In a comprehensive survey of 333 financial advisers conducted by SIG, nearly half (46%) anticipated that their sales of MultiManager funds would increase over the next year, while 51% expected their sales to stay the same. Less than 4% of the financial advisers surveyed expected sales of MultiManager funds to decrease.

A strong and growing demand

The research also revealed that 9 out of 10 financial advisers have a positive opinion of MultiManager funds. Of these, 39% stated that they use MultiManager funds on a regular basis. This positive endorsement of MultiManager funds by financial advisers indicates that demand for MultiManager funds within the market is strong, and set to grow further between now and the end of next year.

Client feedback and understanding of MultiManager funds

Over three quarters (76%) of financial advisers said that their clients were happy for such funds to be recommended, and 62% of those indicated that their clients understood how MultiManager funds work. This suggests that clients have a positive outlook on MultiManager products and their increasing awareness of them demonstrates that MultiManager funds are now a mainstream investment solution rather than a niche product.

Important benefits

When asked to identify the most important benefit of MultiManager funds, one in three (33%) of the financial advisers surveyed pointed out that being able to build a well-rounded portfolio for their clients was the most important benefit. A quarter (26%) of financial advisers identified the ability to delegate asset allocation decisions as being the most important benefit of using MultiManager funds.

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Skandia Investment Group is a trading name of Skandia Investment Management Limited. Skandia Investment Management Limited is registered in England & Wales under number 4227837. Registered Office at Skandia House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. Authorised and regulated by the Financial Services Authority with FSA register number 208543, VAT number 386 1301 59.