One of the world’s largest independent financial advisory, asset management, and fintech organisations, deVere Group, reports a 22% increase in client enquiries in Q1 2023 compared to the same period in 2022.
The rise in demand for financial advice is attributed to multi-decade high inflation, the cost of living crisis, pension tax changes, and Brexit.
Nigel Green, CEO and founder of deVere, said: “There was a significant surge of client enquiries in the first quarter as people seek solutions to bolster their wealth and keep on track with their long-term financial goals.”
Sky-high inflation, despite showing signs of cooling, has driven clients to seek alternative investments to counter the erosion of purchasing power.
Green explained: “It has meant that we’ve been working with clients to seek alternative investments because that inflation erodes the purchasing power of money over time, reducing the real value of the returns on many traditional investment strategies.”
deVere Group has been assisting clients in considering less familiar, return-enhancing asset classes such as venture capital, structured products, high dividend stocks, hedge funds, managed futures, and real estate.
These alternative investments provide increased diversification, reduced volatility, and hedge some portfolio exposures due to their low correlations to traditional investments.
Green added: “Around the world we’ve seen that there’s been a rise in the number of people considering moving overseas for a better quality of life, for better career opportunities, or a less expensive retirement, as a result of the cost of living crisis.” This trend has led to a boost in demand for cross-border financial advice.
Pension tax changes announced by Chancellor Jeremy Hunt in the recent Budget have also been a catalyst for client enquiries.
Green said: “The shock announcements made in the Budget, such as the scrapping of the Lifetime Allowance, took everyone by surprise. Looking for solutions and clarity, clients rushed to advisers to guide them.”
Brexit has additionally contributed to the uptick in client enquiries as many clients have relocated for their jobs following changing market conditions, necessitating further financial advice.
Green concluded: “I expect that most professionals in our industry would agree that Quarter 1 has shown that people are becoming more proactive about their personal finances and creating, building and safeguarding their wealth.”
