More than a third (36%) of intermediaries are encouraging their clients to invest in multi-asset products in response to current market volatility, according to the latest Baring Asset Management Investment Barometer. Nearly half (46%) reported they are looking to increase exposure to multi-asset growth funds, a sizeable increase from the Q1 2014 barometer (30%).

Barings’ research, which canvasses investment sentiment from UK financial advisers, found that intermediaries have become increasingly favourable towards multi asset investing over the past 12 months. 

More than a quarter (29%) of intermediaries claimed to be ‘very favourable’ to multi-asset products, up from 19% in Q1 2014 and the highest number since the Investment Barometer began in 2010, with nearly three in four (73%) now claiming to be ‘favourable’ overall (57% in Q1 2014).

“The research has highlighted yet again that multi asset investing is becoming an increasingly popular investment class in the UK," said Rod Aldridge, head of UK wholesale distribution at Barings.

"This is being driven by the fact that multi asset strategies aim to deliver equity-like returns with less risk than holding an equity-only portfolio. The critical skillset in achieving this is dynamic asset allocation, and a willingness to move between different asset classes when necessary.”

The research also revealed a growing appetite for multi-asset income products, with a quarter (24%) of intermediaries claiming to be ‘very favourable’ and 70% ‘favourable’ towards the asset class. Indeed two in five (41%) said they will be increasing their client’s exposure to multi-asset income products, which seek to provide a regular income stream, over the next 12 months.

Aldridge added: “In light of significant UK pension reforms, we believe there will be an increasing need for products that are designed to provide a regular income while minimising risk. Multi-asset products can fit this market very effectively.”