Aegon Adviser Attitudes Report 2021

Decrease in use of commercial property There were a number of property suspensions in 2020, which goes a long way to explaining why many have removed or reduced their weighting to property this year. The fact that advisers have a significant number of clients who are either at, or near retirement, requiring access to income, is also likely to be a factor. The FCA’s consultation 1 on the suitability of property for retail customers has also caused many to remove or reduce exposure to property. This is likely to have a further impact when it publishes its policy statement and final handbook rules later this year. While 34% felt that property was still a valuable long-term investment, 54% have either reduced or removed their weighting to direct property, largely due to liquidity concerns. A small number ( 3% ) have addressed this concern by replacing direct property holdings with listed infrastructure. Has your/your firm’s view on commercial property changed over the last 12 months given recent suspensions? No, it’s still a good long-term investment for clients who can a ord to wait Yes, removed or reduced weighting because of concerns about liquidity Yes, removed or reduced weighting because of concerns about the FCA’s comments on suitability for retail customers Yes, replaced commercial property with listed infrastructure Other 0 5 10 15 20 25 30 35 40 34% 16% 38% 3% 9% 1 FCA consultation CP20/15. Liquidity mismatch in authorised open=ended property funds. https://www.fca.org.uk/publications/consultation-papers/cp20-15-liquidity-mismatch-authorised-open- ended-property-funds 54% of advisers have removed or reduced exposure to commercial property 30 Aegon adviser attitudes report 2021