Advisers Tell Clients To Keep Assets Put

A release from the wealth management platform provider said a survey of some of its most successful adviser clients revealed that when faced with client pressures, only 12% of advisers would move assets when pressured. Of that 12%, 4% would choose to adopt a more conservative asset allocation and 8% would move investments to cash/money market instruments.

The survey also found that more than 46% of advisers choose to work with clients to reevaluate goals and assess risk tolerance, while 31% meet with clients more frequently to address concerns.

Throughout the industry, there have been competing views about how responsive advisers should be to client anxieties when it comes to adjusting their portfolios, which is somewhat aligned with poll results, SEI said. Although roughly 78% of advisers said their clients were generally accepting of their advice, almost 22% said clients had questioned, resisted, or even refused to heed advice, with some advisers expressing that clients have insisted advisers make changes.

“For the most part, we’re seeing advisers counsel clients to stay the course and not panic,’ said Stephen Onofrio, senior managing director, SEI Advisor Network, in the release. “People rely on their advisers’ advice and their trusted relationship for guidance. It’s natural for clients to be inquisitive and anxious to make some type of move during market downturns. Where advisers face real challenges, however, is in helping clients understand why they’re advising them to hold tight.”

The survey was completed by more than 250 independent financial advisers from around the country.