The economy might be tanking and society as a whole on standstill as the world waits for any definitive news on the future of the coronavirus crisis, but financial advisors seem to be persevering without too many changes to their daily operations, according to a new report.
Practical Perspectives, a consulting and research firm offering support to wealth management firms, released a report revealing that most advisors are still serving their clients without too much obstruction, even as shelter-in-place orders continue to keep people in their homes.
While there does seem to be a small uptick in heightened concern amongst clients--with good reason--cool heads seem to be prevailing as most advisors believe their clients are not panicked, according to the report.
In the report, Practical perspectives polled over 525 advisors, including full-service broker-dealers, independent broker-dealers, other broker-dealers and RIAs.
This could be because advisors have made the extra effort since the market turned downward. Advisors across the board have been proactive when it comes to connecting with their clients via phone, email, and/or video conferences.
The optimistic outlook seems to be making its way across the portfolios advisors manage. According to the report, 83% have made no more than minor changes to how they manage portfolios, and this includes one in three advisors who have not made any changes. When it comes to portfolio changes, 52 percent of those have been raising cash allocations, 38 percent has been boosting exposure to “less aggressive” equities, and 33 percent has been decreased equity exposure.
Furthermore, 84% are either “extremely” or “very” confident in meeting client needs, and most expect the market to rebound over the next six months. While, overall, advisors do expect revenues and profitability to take a hit, the mood remains rosy about the future.
