IFAS and wealth managers expect more clients to start managing their investable assets themselves

New research ⁽¹⁾ from ETF provider GraniteShares reveals that over the next five years, 60% of wealth managers and IFAs expect clients to start managing more of their investable assets such as pensions and ISAs themselves, as opposed to using a financial adviser.

Just 14% expect them to do less of this, and 26% predict that the level of time they spend on managing their investments will stay the same as today.

When asked why they expect more clients to start managing their own investments more, 50% of wealth managers and IFAs said it’s because there is an increasing arrange of tools and features available to them to do this, such as digital wealth management platforms.  Some 38% cited the fact that there is now much greater access to market data making it easier to decide on investment decisions, and the same number (38%) said it’s because investors want to reduce the amount they pay in investment charges.

One in three (34%) said it’s due to there  being even more funds and investment products for investors to use that don’t require the need for a financial adviser, but 26% said it will be due to it becoming harder to find a good financial adviser – many are retiring or leaving the profession.

Will Rhind, Founder and CEO at GraniteShares commented: “The stock market volatility since the outbreak of the coronavirus pandemic has provided a backdrop for wealth managers and IFAs to demonstrate their worth in advising clients and adjusting portfolios to help meet particular investment goals.  It has been a difficult time for all investors but there is no question that an increasing number are looking towards self-directed solutions to keep costs down.

“This is also happening because there is a combination of better information and more investment products available to investors than ever before.  These products offer an array of different investment strategies and exposures.  Some retail investors – especially the more sophisticated ones – may feel comfortable using these themselves without the need for any  professional advise – but these new investment products also present an opportunity for IFAs and wealth managers to both help guide clients through the volatility and deliver better outcomes.”

In November last year, GraniteShares listed a range of short and leveraged single stock daily Exchange Traded Products (ETPs) on the London Stock Exchange, enabling for the first-time sophisticated investors to take positions on both rising and falling share prices. In addition to this, they can also be used to hedge individual stock exposures, including those held indirectly through index or fund holdings. By providing transparent access through an ETP, GraniteShares is removing the barriers that sophisticated investors face if they want to use leverage.

GraniteShares daily ETPs are providing long and short exposure to a selection of major companies listed on the London Stock Exchange.

GraniteShares ETPs

Underlying stock	+3x Long	-3x Short
AstraZeneca	3LAZ	3SAZ
BAE Systems	3LBA	3SBA
Barclays	3LBC	3SBC
BP	3LBP	3SBP
Diageo	3LDO	3SDO
Glencore	3LGL	3SGL
Lloyds Banking Group	3LLL	3SLL
Rio Tinto	3LRI	3SRI
Royal Dutch Shell	3LRD	3SRD
Rolls-Royce	3LRR	3SRR
Vodafone	3LVO	3SVO