Paraplanners and discretionary fund managers will be the primary beneficiaries of increased outsourcing among advisers, research suggests.
A survey of 1,323 advisers by CoreData found a large rise in outsourcing across the spectrum, as advisers increasingly begin to concentrate on client relationships.
Extrapolating from the firm's database of 28,000 advisers, an extra 2,000 will be using a DFM or paraplanner by the end of the year, said principal Craig Phillips - a rise of 16%.
"Advisers fully outsourcing is set to rise 60%," he said. "It's from a very low base - 4% of advisers currently fully outsource, which will rise to 5.9% - but partial outsourcing will also become more common."
"It looks like advisers are going to start to focus on the client relationship side. What's happened over many years is there a step back from dabbling in investment process. We'll see an increase in outsourcing of paraplanning, with specialist firms in that area growing.
"It could be a cost thing but also an operations thing. With so much on their head it means they don't have time to be picking things here or there, although there are plenty of niche advisers still operating a bespoke service."
The research also pointed to a rise in use of model portfolios at the expense of single manger or multi-manager.
Average annual allocations by firms are set to rise from £1.65m to £2.12m over next 8 years to 2020.
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