IFA Census

1
October 2007
2
Introduction

• This report is the fifth wave of research
  undertaken on behalf of Reita.org using NMGs IFA
  Census platform.
• Fieldwork was conducted during 9th 19th October
  2007 and where appropriate results are compared
  to the last wave of results which were undertaken
  in June 2007.
• Respondents interviewed all generate a minimum of
  25 of their income from savings and investment
  products in all 246 advisers completed the
  survey.

3
Reita awareness
Nearly 60 of all respondents have now heard of
Reita, visited the website or registered only
41 do not know Reita
Base All Respondents Oct 2006 (224) , Feb 2007
(259), June 2007 (213), Oct 2007 (246) Have you
heard of Reita?
4
Informed of REITs uses and benefits knowledge
The number who are very well informed or well
informed on REITs is broadly in line with the
two previous waves with 3 in 4 being informed to
some extent about REITs
Base All Respondents May 2006 (215), Oct 2006
(224), Feb 2007 (259), June 2007 (213), Oct 2007
(246) How well informed do you feel about REITS
and their uses and benefits?
5
Incorporate REITs into client investment
portfolios
In spite of the recent uncertainty in the
property market, intentions to make use of REITs
remain almost unchanged from the previous wave
October 2007
June 2007
Base All respondents June 2007 (213), Oct 2007
(246) Do you expect to incorporate REITS into the
portfolios of your investment clients?
6
Client enquiries regarding REITs
Client enquiries remain at the same level as the
previous wave
October 2007
June 2007
Base All respondents June 2007 (213), Oct 2007
(246) Have your clients enquired about REITS and
other property companies?
7
Client portfolio allocated to property investments
REITs
However, recommendation of property related
investments is down across all categories from
June
October 2007
June 2007
Base June 2007 (213), October 2007 (246) What
percentage of a client's portfolio would you
typically recommend being allocated to property
investments?
8
Investment provider likely to place most REIT
business
The fluctuations in preferred investment provider
usage suggest that advisers are as yet uncertain
as to who to recommend for REITs
Base All respondents May 2006 (206), Oct 2006
(106), Feb 2007 (259), June 2007 (213), Oct 2007
(246) Which of the following investment providers
would you prefer to deal with for REITs business?
Please pick a maximum of 5)
9
Likely product/fund for collective investments
UT/OEIC property funds remain by some margin the
most likely investment vehicle to be used for
REITs
Base All respondents Oct 2006 (64), February
2007 (259), June 2007 (213), Oct 2007 (246) Which
of the following are you likely to use for
collective investments. Please tick all that
apply.
10
Demand for sector specific property investments
Offices and retail retain a significant level of
interest, while interest in residential has
fallen back following the large increase in the
previous wave
Base All respondents February 2007 (259), June
2007 (213), Oct 2007 (246) Is there there a
demand for sector specific property investments
(via REITs or collective investment schemes)?
11
Importance of property investments by ranking
Diversification from bonds and equities remain
the most important feature of property investment
October 2007
June 2007
Base All respondents June 2007 (213), Oct 2007
(246) Please rank the following features of
property investment in terms of importance to you
(1 most important, 7 least important). Please
use each ranking only once.
12
Vehicles fit to preferred property investments
features by ranking
Bricks and mortar funds investing in the UK and
direct investment in commercial property are the
best vehicles to fit advisers preferred property
investment features
October 2007
June 2007
Base June 2007 (213), Oct 2007 (237) Please rank
the following vehicles of their fit to your
preferred property investment features . (1
best fit, 8 worst fit)
13
Geographical areas likely to recommend for
property investments
Overall non UK has experienced some increase in
consideration with the exception of the USA which
half of all advisers would not recommend for
property investment
Base October 2007 (246) Which geographical areas
are you likely to recommend for property
investments (via REITs or collective investment
schemes) and how is this changing?
14
FSA permission to advise on REITs
There has been little change over the past three
waves in the number who have permission to advise
on REITs
Base All respondents February 2007 (259), June
2007 (213), Oct 2007 (246) Do you or your firm
have the appropriate FSA permissions to advise on
REITs and other quoted equities?
15
Formal qualification in property investment
Nearly 6 in 10 of respondents express some
interest in attaining a formal qualification,
however, only 6 are very interested
Base All respondents Oct 2007 (246) How
interested would you be in obtaining a formal
qualification in property investment offered by
the CII?
16
Awareness of specific REITs
British Land, Land Securities and Great Portland
Estates are by far the best know REITs /
prospective REITs
Base October 2007 (246) Which of the following
were you aware of prior to today?
17
Attractiveness as investment opportunity of
specific REITs
Just three property companies are viewed as an
attractive investment opportunity Hammerson
receives a low rating relative to its awareness
score
Base Oct 2007 (201) (Excluding lt5) Of the
current proposed UK REITs you are aware of,
which do you think could represent an attractive
investment opportunity for your clients (either
directly or through a collective investment
scheme)?