Aegon Adviser Attitudes Report 2021

Diversification main reason for popularity of multi-asset funds 61% of advisers told us ‘diversification’ was one of the main reasons for recommending multi-asset funds, with 40% telling us that the ability to select risk-rated funds was an important factor. Access to asset allocation expertise was cited by 39% as key, while 26% said they used them because clients found them easy to understand. This ease of understanding and ability to select risk-rated funds make it easier for advisers to demonstrate client suitability. Multi-asset funds are also seen as much easier to use. PROD and MIFID II have increased disclosure responsibilities on fund providers, and 7% of advisers specifically mentioned that they’d reduced the use of in-house solutions as a result. In-house models often involve acquiring permissions from clients for every portfolio change, while advisers still retain disclosure responsibilities even where they've outsourced portfolio management to a DFM. If you use multi-asset funds, what is the main reason you recommend this investment strategy? Please select a maximum of three options. Diversification of client assets Ability to select risk-rated funds Asset allocation expertise Easy for clients to understand Ease of use Cost Stock selection expertise Expected investment return Other I don’t use multi-asset funds 0 5 10 15 20 25 30 35 40 45 50 55 60 65 61% 40% 39% 26% 23% 20% 12% 2% 8% 8% Aegon adviser attitudes report 2021 25