According to Schroders UK survey of 161 UK financial advisers, the number of clients who reported feeling bearish in 2020 has fallen dramatically from 50% to 8% 2021.

Three quarters of advisers surveyed by the asset manager said they expect to see higher global growth over the next five years, with 81% saying they believe there will be boosted UK growth over the same period.

A fifth (20%) of advisers reported that their use of outsourced portfolio management has increased over the past year.

Access to investment expertise and resources was the most important reason in influencing financial advisers’ decision to outsource portfolio management. Freeing up more time to spend with clients was another key reason cited by 58% of advisers.

The number of advisers who expect inflation to increase over the next year has almost doubled, from 47% in November to 80% in 2021.

According to the advisers surveyed, the majority (62%) of equity investors are setting their sights  on value stocks which have typically outperformed during turning points in the growth cycle. Advisers are also seeing opportunities in quality companies, that demonstrate strong balance sheets and robust fundamentals.

Almost 1 in 7 (69%) of advisers said that the crisis will increase the attention they pay to environmental, social and governance (ESG) risks associated with investments. The majority (84%) of financial advisers said they agree that the Covid-19 crisis has reinforced the importance of stewardship and using an asset manager who actively engages with the companies in which it invests.

Alex Funk, CIO of Schroders Investment Solutions said: “The results of Schroders 2021 UK Financial Adviser Pulse Survey, fills me with optimism for UK investors and their financial advisers. Following the impact of the pandemic on investor confidence, we are now starting to see confidence being restored and advisers are starting to seek new investment opportunities for their clients.

“Although, ongoing uncertainty and market volatility is expected to continue, over the short-term it’s encouraging to see that advisers who have reported that the number of clients who were delaying retirement due to concerns about reduced capital or income, has reduced from 49% in April 2020 to 34% in May 2021.

“As we look ahead, UK financial advisers will be looking for solutions that harness the unforeseen opportunities that are arising from the coronavirus crisis. From the acceleration of new trends, market rotations and disruption to the traditional growth sectors, this is a potentially exciting time for the UK’s investment landscape.”