TABLE OF CONTENTS
Overview 1
Catalyst 1
Summary 1
Methodology 1
Executive Summary 2
Market Context 2
Sector Issues 2
Market Context 8
The Survey sample consists mostly of sole traders 8
Financial advisors believe sales of many savings products will remain unchanged in the future 10
In terms of providers, financial advisors have a particularly positive attitude towards Skandia, Friends Provident & Standard Life 13
In terms of mutual fund providers, advisors are most positive about Invesco Perpetual & Fidelity 19
Data 23
Sector Issues 27
Advisors’ choice of provider is most affected by provider service and financial strength 27
Life companies’ asset management arms have improved somewhat over the last 5 yrs 29
The area of specialization varies between different fund managers 33
The key opportunities in the market lie with products such as wraps and REITs, as well as areas such as the Far East 38
Size of fees have a most significant impact in the choice of life company 40
Advisors find complex funds fairly simple to communicate to clients 44
REIT funds are seen as a particular area of growth 48
Data 52
APPENDIX 59
Definitions 59
Methodology 60
Further reading 60
Ask the analyst 60
Datamonitor consulting 60
Disclaimer 60


TABLE OF FIGURES
Figure 1: Sole Traders constitute just over 40% of the total survey sample 8
Figure 2: Just over a quarter of respondents have more than 50% of their client base classified as high net worth 9
Figure 3: Approximately half of respondents have more than 50% of their customer base classified as mass affluent 10
Figure 4: The majority of financial advisors believe sales of many savings products will remain unchanged over the next 6 months 11
Figure 5: Financial advisors are most optimistic as to the growth potential of ISA, SIPP & personal pensions products over the next 6 months 12
Figure 6: Very few advisors had an overtly negative view of providers 14
Figure 7: A large proportion of respondents were indifferent towards providers, citing the belief that their products were not matched to their business model 15
Figure 8: In terms of product providers, financial advisors have a particularly favorable attitude towards Skandia & Friends Provident 16
Figure 9: Financial advisors are most impressed by Invesco Perpetual and Fidelity in terms of mutual fund providers 21
Figure 10: Financial strength and provider service are the greatest influences on an advisor’s choice of provider 29
Figure 11: Over half of financial advisors believe that the asset management arms of life companies have improved over recent years 30
Figure 12: Standard Life, Skandia and Legal & General are perceived to have the best asset management arms 32
Figure 13: Jupiter, Invesco & New Star are mutual fund providers who are also highly rated as asset managers 33
Figure 14: Norwich Union, New Star & Standard Life are perceived to be the top three property fund managers 34
Figure 15: Invesco, Jupiter & Fidelity are the top rated equity fund managers 35
Figure 16: Fidelity, Jupiter & Invesco Perpetual are the three most highly rated international equity fund managers 36
Figure 17: Over three quarters of financial advisors believe that the size of management fees have some impact on their choice of life company 41
Figure 18: Over 70% of financial advisors believe that management fees have an affect on their choice of mutual fund provider 42
Figure 19: Half of those surveyed believed that the level of fee transparency is a particularly important consideration when choosing an investment product 43
Figure 20: Having a wide range of underlying investment funds is important in all product areas 44
Figure 21: Nearly two thirds of financial advisors find fund of fund investments relatively easy to explain to clients 45
Figure 22: More than half of financial advisors find manager of manager funds straightforward to explain to clients 46
Figure 23: Nearly half of financial advisors believe that higher charging structures on fund of fund investments are only occasionally justified 47
Figure 24: Just under a quarter of financial advisors believe that returns achieved through manager of manager investments are not worth the higher charging structures 48
Figure 25: More than 80% of financial advisors believe REITs funds have growth potential over the next 5 years 50
Figure 26: Nearly half of financial advisors believe that equity REITs hold the most potential out of all REIT products 51


TABLE OF TABLES
Table 1: Funds under management levels, 2006, split by asset class 19
Table 2: Composition of survey sample, segmented by type of company 23
Table 3: Percentage of respondents who classify more than half their customer base as high net worth 23
Table 4: Percentage of respondents who classify more than half their customer base as mass affluent 23
Table 5: Advisor opinion as to how sales of certain investment products will change over the next six months, % of respondents 24
Table 6: Advisor attitude towards a selection of life companies, % of respondents 25
Table 7: Advisor attitude towards a selection of mutual fund companies, % of respondents 26
Table 8: Percentage of respondents who believe a selection of factors have an influence on their choice of life company 52
Table 9: Financial advisor opinion as to the development of life company asset management arms over recent years 52
Table 10: Providers perceived to have the best asset management arms 53
Table 11: Mutual fund providers rated highly as asset managers 53
Table 12: The top property fund managers 54
Table 13: The top equity fund managers 54
Table 14: The top international equity fund managers 54
Table 15: Financial advisor opinion towards the effect of management fees on their choice of life company 55
Table 16: Financial advisor opinion towards the effect of management fees on their choice of mutual fund provider 55
Table 17: Financial advisor opinion as the effect of fee transparency on their choice of investment product 56
Table 18: Financial advisor opinion as to the importance of a wide range of underlying investment funds for a selection of products 56
Table 19: Financial advisor opinion as to whether they find fund of fund investments straightforward to explain to their clients 57
Table 20: Financial advisor opinion as to whether they find manager of manager investments straightforward to explain to their clients 57
Table 21: Financial advisor opinion as to whether they believe returns achieved through fund of fund investments are worth the higher charging structures 57
Table 22: Financial advisor opinion as to whether they believe returns achieved through manager of manager investments are worth the higher charging structures 58
Table 23: Financial advisor opinion as to the growth potential for REITs over the next 5 years 58
Table 24: Financial advisor opinion as to which type of REIT holds the biggest growth potential 58