More than 80% of advisers plan to increase their exposure to multi-asset funds based on the diversification and risk profiling opportunities offered.
A survey of 262 advisers carried out by Architas during April and May found that 83% were either likely or very likely to increase multi-asset exposure this year.
Diversification was cited by 36% of survey participants as the best reason for choosing multi-asset, followed by 27% who highlighted the risk profiling opportunities.
Architas head of business development Cedric Bucher said regulatory pressures, resulting from the Retail Distribution Review (RDR), together with sustained market volatility was helping to drive demand.
He said: "It is understandable given the recent volatility of the markets that advisers are keen to ensure their client holdings are well diversified. Multi-asset funds can play a role in helping advisers to meet this objective.
"Although the best performing single asset portfolio will always outperform a diversified portfolio in the short-term, in the long run the weighted average of different asset classes can be very attractive. A diversified portfolio is also likely to enjoy much lower volatility than a fund invested solely in one asset class."
Clarke replacing Balkham
'Deep-dive analysis of client behaviour'
Ways to mitigate April’s increases
The best equity income funds examined