UK investors choosing a robo-adviser are far more likely to be influenced by price and ease of use than they are by brand, a survey from Legg Mason has found.
According to the asset manager’s 2017 Global Investment Survey, its fifth annual poll of investor attitudes and sentiment, just four percent of UK investors say brand would play the most important role in their selection of a robo-adviser. In contrast, 22 percent say price and fees would be the most important consideration, with 17 percent citing ease of use as their primary concern.
Third on the priority list was fee transparency and simplicity – the key consideration for eight percent of respondents – followed by the range of investment products available (cited by 6 percent).
Links to financial advice firms (five percent), range of asset classes available (three percent) and the size of the assets already managed by the firm (two percent) rounded out the list, along with links to product providers (also two percent).
Justin Eede, head of Europe and Americas distribution at Legg Mason, said: “Robo-advice is becoming an increasingly prominent feature of the UK investment landscape with growing numbers of providers competing for a foothold in this fast-developing market.
“Perhaps it is intuitive that investors selecting online investment services are prioritising price and ease of use above all else, but it is interesting to note how little weight they are giving to brand. We will see how the market in the UK develops but the findings suggest that, right now, investors simply want online services that are low-cost, easy to use and transparent.”
Legg Mason’s Global Investment Survey is a quantitative study of 15,300 respondents from 17 markets around the globe, with 900 respondents specifically from the UK.
Legg Mason is a global asset management firm with assets under management of $728 billion as of March 31, 2017.