Heartwood suspects that this increased appetite for multi-asset products hinges on their diversifying properties, which are prised more than ever because of persistent market volatility.
The wealth manager commented: “The biggest challenge facing investors seeking long term income is the erosion of capital if markets fall and a similar amount of income continues to be taken, up from second place last year.
“The second and third-biggest challenges are taking on more risk in order to counter the impact of continued low interest rates and bond yields, and the risk of income fluctuating.
“The research shows that advisers are increasingly drawn to multi-asset income products because of their ability to deliver a smoother journey through diversification, preserve capital when markets fall, and to manage market cycles through tactical asset allocation.”
Heartwood’s own income funds have attracted 24% higher inflows in 2016 from advisers trying to tap into a global multi-asset income solution.
