Stock market falls and worries over the world economy seem to have damaged the confidence of independent financial advisers (IFAs) in the role of shares in their clients' portfolios.
A survey of IFAs by Legal & General found the number expecting to invest their clients' money in the stock market over the next 12 months is 15 per cent less than a year ago. In fact, 72 per cent of IFAs said they would look to equities for investment in 2012; 12 months ago, the figure was a more robust 92 per cent. "This survey clearly shows the level of uncertainty that financial advisers are experiencing," said Simon Ellis, managing director of L&G (left). "Investors are becoming more bearish and are perhaps positioning some of their holdings in cash."
Shares aren't the only asset affected. The L&G survey found the percentage of IFAs investing their clients' money in property had fallen 20 points from 44 to 24 per cent in the past year. The numbers of IFAs saying that they don't know where to put their clients' money grew from 2 to 10 per cent during the year.