Advisers back active over passive for drawdown clients - Zurich

Just 3% in passive funds

Hannah Godfrey
clock • 1 min read

Financial advisers favour active over passive investment when it comes to drawdown, with the majority (89%) investing drawdown assets into active funds, research by Zurich has found.

Research by the pension and platform provider has found advisers overwhelmingly back active management for customers in retirement. It found just 3% of drawdown assets are held in passive funds, and a further 8% of advised drawdown assets are being held in cash, according to Zurich. The top three investment sectors for advised customers in drawdown are the unclassified sector (40%), cash (10%) and UK equity income (6%). Advisers are also more likely to go overseas to generate returns, with just 21% of drawdown assets invested in UK funds compared to 79% globally. Zurich head of ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

Retirement income advice: FCA finds 'mixed picture' among case files

Retirement income advice: FCA finds 'mixed picture' among case files

Regulator published outcome of thematic review into retirement income advice

Jenna Brown
clock 20 March 2024 • 5 min read
FCA tells IFAs to review retirement income advice processes

FCA tells IFAs to review retirement income advice processes

Comes after regulator’s thematic review of retirement income advice

Jenna Brown
clock 20 March 2024 • 2 min read
Addressing the 'regulatory timebomb' of income security

Addressing the 'regulatory timebomb' of income security

'Advisers remain concerned about the levels of withdrawals'

Kevin Carr and Matt Morris
clock 19 February 2024 • 4 min read