Cost and provider reputation are the most important factors for advisers choosing a passive investment provider, research suggests.
A survey conducted by Legal & General Investments polling nearly 300 advisers in January found two-thirds (65%) cited cost as the most significant determinant when selecting a passive provider.
"The result of this research highlights how important cost has become in a period of significant market volatility and straightened times," said Legal & General Investments managing director Simon Ellis.
A third of survey respondents (33%) ranked reputation and longevity of investment provider as the highest-ranking factor, with a similar number (32%) citing range of passive funds.
Almost two-thirds said the size and scale of investment provider was "quite important" and contributed to the overall decision-making process of selecting a provider.
According to Morningstar European fund flow data, passive funds had a strong month in January with €1.2bn flowing into index funds.
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