Financial advisers are becoming increasingly confident about writing bond business for their clients, with 73% saying they are either considering or planning to increase the number they write moving into 2019.
Research from Canada Life shows an improvement in advisers’ attitudes towards bonds, with 61% recognising their benefits.
Over two-thirds (67%) of financial advisers cited tax deferral options as an advantage, while 62% also mentioned top slicing relief as one of the benefits.
This is a significant increase from 2017 where only 49% and 48%, respectively, felt confident about such advantages for their clients.
Onshore bonds remain the preferred option, with 42% of advisers now planning to only write more onshore bonds, compared with 40% considering a mixture of both offshore and onshore.
Firm portfolio fixture
Richard Priestley, executive director of Canada Life UK, said: “Despite the complex, rapidly evolving landscape, the popularity of bonds with advisers shows no signs of slowing. Bonds continue to remain a firm fixture in portfolios, with many advisers recognising the importance and usefulness they hold as a defensive investment option for their clients.
“It is unsurprising that more financial advisers are recognising the benefits of bonds, such as top slicing relief, compared to a year ago. However, with 2019 on the horizon, advisers who have yet to consider writing more bond business for their clients in the next 12 months would be wise to consider this option.”
