Advisers spend half a day of their working week on asset allocation, adapting investment strategies to cope with unprecedented stock market volatility.
The average specialist investment IFA spends 11% of his or her time on asset allocation, with one in five dedicating a whole day a week, according to a nationwide survey of 100 advisers by MetLife Europe.
Its research also found 62% of advisers have now changed their asset allocation approach this year in response to turbulent market conditions.
Advisers are split on how to adapt, with 14% saying they have switched to index fund dominated models, while 48% have moved to mainly active fund driven portfolios.
The research also found just under 60% of IFAs have seen clients opt out of equities, with a quarter reporting the majority of their clients have turned their backs on high equity content in their portfolios.
Close to 10% of advisers use model portfolios for their client base, while nearly 60% rely purely on individual advice, with almost 30% using a mixture of both, the research found.
"Asset allocation has to adapt in the current investment climate given the unprecedented volatility and with the drift of the FTSE 100, clients are increasingly losing faith in a pure equity approach," says Dominic Grinstead, UK managing director, MetLife.
"Advisers and clients relying purely on equities and trusting that on average they will pay off in the long run is risky.
"Averages don't apply to everyone and in the long-run might prove to be too long for some if they lose out," he adds.IFAonline
Achievements, charity work and other happy snippets
Laughable excuses for persisting
Spent 56 years at Schroders
Warns on profits