Three out of four clients rate advice as very good or excellent, MetLife consumer research shows.

 

Client satisfaction with guaranteed products has continued to climb as ongoing volatility 

highlights the value of certainty in financial planning, independent consumer research from MetLife* shows.

 

Around 88% of clients  this year  say they understand and value income and capital 

guarantees in products compared with 83% in 2011 and 79% in 2010, the study by ORC 

International found.

 

The rise is being driven by increased experience and expertise from IFAs advising on 

guaranteed retirement and investment products, MetLife believes.

 

Its research found 74% of clients rated their IFA as very good or excellent in providing clear product information while 73% said advisers were very good or excellent at highlighting the benefits of guarantees.

 

And 70% of clients said advisers were very good or excellent at pointing out the potential risks associated with guaranteed products in the survey.

 

Ongoing volatility in the stock market, which has seen the FTSE-100 fall from around 

5,699 at the start of 2012 to around 5,473 in June while nearly passing the 6,000 mark in March, has helped underline the attraction of guarantees, MetLife believes. Dominic Grinstead, Managing Director at MetLife’s UK Branch said: “There is always a case for guarantees as part of a balanced portfolio but it is clear that the ongoing volatility driven by the Euro crisis is underlining the case for IFAs and clients.

 

“There is a real need for certainty when planning for retirement and guarantees have a key role to play along with other products. This is demonstrated by the increase we have seen in client satisfaction with guaranteed products.”

 

MetLife has attracted £300 million to its Managed Wealth Portfolios just five months after launching the new funds managed by world-leading asset manager BlackRock.

 

The Portfolios, which were designed to help savers better manage market fluctuations while still having the potential to achieve growth, enabled MetLife to enhance its product range through the introduction of annual unlimited lock-ins of potential gains on its range of capital and income guarantee products, and to offer an enhanced annual deferred income increase of 4% on its income guaranteed products.

 

MetLife developed the portfolios over nine months following extensive client and adviser 

research which identified the need for innovative solutions to ongoing market turbulence and low long-term interest rates.

 

BlackRock manage the  three Portfolios – which offer maximum equity exposures of 50%, 

60% and 70% - varying the funds’ exposure depending on market conditions. 

 

The three Managed Wealth Portfolios include the Min which offers maximum 50% exposure to equities; Mid which offers maximum 60% exposure to equities; and Max which offers a maximum 70% exposure to equities. Minimum guarantee terms start from 10 years.

 

The funds’ exposure to equities is changed depending on market conditions with the Min 

Portfolio likely to have the lowest swings in value over time compared with other portfolios.