"This poll shows the true impact of the financial crisis that started in 2008 – advisors are looking for new ways to make their business more secure and more successful," said Stephen Onofrio, Head of Sales and Service, SEI Advisor Network. "Advisors that identify and implement best-practices in processes, procedures and technology will win the race for investor confidence and grow assets."
A Look Back at 2009
As a result of heightened business risk, a majority of advisors revised their operations and client relationship strategies during 2009. More than half (59 percent) of advisors said the most challenging part to 2009 was the 'continued pay cut due to market depreciation.' Nearly one-third (29 percent) said scaling back expansion plans was the hardest part.
While advisors focus on business risk, risk mitigation is a key theme with investors. Nearly half of advisors (45 percent) said clients are 'not as risk tolerant as originally thought.' Nearly one-third (29 percent) said clients learned they 'can handle market volatility if they focus on long-term goals.' Most advisors (68 percent) said they communicated with clients more frequently in 2009.
"Being there for my clients took on a whole new meaning in 2009," said Michael Ferman, CPA, Head of Rubin Brown Advisors of St. Louis, Missouri. "Investors of all types became increasingly aware of market risk and I spent more time re-educating clients on the benefits of a properly diversified investment approach in order to attain their long-term goals. Regardless of what the market was doing, this helped me forge deeper client relationships and build their level of trust."
A Look Ahead at 2010
In addition to managing risk, top resolutions among advisors for 2010 include becoming more client-centric, growing their book of business, and improving technology, all direct results of the 2008 and 2009 market environment. Managing business risk now takes more time said 73 percent of advisors and 67 percent said regulatory compliance has become a key emphasis. For 2010, 67 percent of advisors plan to change processes and procedures, and 51 percent plan to improve technology. In an effort to deepen client relationships, 70 percent of advisors have adopted a holistic financial planning approach with clients.
Most advisors (85 percent) are 'cautiously optimistic' or 'optimistic' for 2010. More than half (63 percent) of advisors believe the market upswing has convinced clients to get back into the markets. Predictions for 2010 are positive as 70 percent of advisors expect a '0 to 10 percent gain' performance projection for a diversified '60 percent equity and 40 percent bond portfolio.'
Resolutions for 2010
The poll also included feedback from advisors on their New Year's resolutions about both their clients and businesses. The top eight resolutions for 2010 included:
1. Grow business in AUM and clients
2. Touch clients, centers of influence more regularly
3. Use technology to improve business
4. Stress less, get healthier
5. Listen better, be more client-centric
6. Repeat my performance of 2009
7. Improve personal organizational skills
8. Hire additional staff
"The market has become more fluid and transactional, with a more restrictive compliance environment, making the use of technology and systems a critical component to delivering and implementing the final product with a streamlined process," said Mitch Walk, President of Asset Management Partners of Longwood, Florida.
