In Practice February 13, 2009

Concerned Clients Calling More

A more volatile market and nervous investors appear to be taking more time from their financial advisers.

Reported by

In fact, according to the 4th Annual National Financial Broker and Advisor Sentiment Index, the vast majority (92%) of brokers report spending an average of 36% more time giving investment advice to their clients compared with a year ago. As a result, nearly half (43%) of those clients took action in their portfolios, according to the survey by National Financial, a Fidelity Investments company.

Market Movements

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When looking at clients of brokers who took action in their investment portfolios over the past 12 months, the National Financial study found that more than one-in-five (21%) moved at least some of their assets into safer investments, while seven percent moved assets into more aggressive investments and 14% simply increased their overall asset levels.

Looking ahead, nine in 10 believe the market (as measured by the S&P 500) will be flat to positive in 2009, with three-quarters seeing the market increasing by an average of 15%.

The National Financial Broker and Advisor Sentiment Index is an analytical measurement of U.S. brokers’ and advisers’ satisfaction with their profession and their current broker/dealer. It combines satisfaction with the levels of support brokers and advisers feel they get from their firm in various areas, along with brokers and advisers’ satisfaction with their work-life balance in terms of having the time and ability to accomplish their personal, financial, relationship, and work goals. Data for the Index comes from a National Financial study of more than 1,200 U.S. investment professionals.

The National Financial study was conducted by online interviews between October 3 and November 7, 2008, by Sancore LLC. The respondents came from a mix of independent, wirehouse, insurance, regional, bank, and RIA firms, weighted to accurately reflect the industry composition.