After conducting a survey of 109 financial advisers nationwide last October, the insurer said 84% of respondents cited leaving the EU as the biggest issue for five-year investment returns.
Concern about the potential fallout from Brexit overshadowed worries about low long-term interest rates and the impact of market falls over the next five years, Prudential said.
The survey found around 66% of the advisers expressed concerns about market falls as a result of them being overvalued, 63% were worried about delivering income for clients over a five-year time period and 55% were concerned about ongoing low interest rates.
Prudential said the concerns about five-year investment returns were driving advisers to consider smoothed multi-asset investment products to help protect clients’ funds and deliver returns.
“The research found that 70% feel obliged to offer these funds to clients in current market conditions,” the insurer said in a statement on Wednesday.
“Nearly six out of 10 of advisers believe there will be a medium-term market correction while 76% say smoothing of investment returns is more attractive to clients when market conditions are challenging,” it said.
Vince Smith-Hughes, head of business development for retirement income at Prudential, said: “Brexit is overshadowing all other investment planning issues and highlighting the need for solutions which can provide protection and the possibility of strong returns.
“The triggering of Article 50 will provide some certainty for financial planning but will continue to highlight the need for solutions and advice which can support individuals in achieving their investment goals in the short to medium-term,” he said.
