One of the major causes of continued market turmoil is economic uncertainty. In the extended period of uncertainty we’re now experiencing, investors have been slow to make decisions and even slower to commit capital to new projects. This hesitation is impacting the advisor-client relationship even for high level strategic financial advisors.
A new SEI survey indicates that two pervasive attitudes are affecting the rate of investment:
- “Inevitable” tax increases will harm the economy: 80%
- Regulatory reform for financial services industry is unavoidable: 62%
The survey also indicates that only 16% of advisors can afford to spend significant time and effort seeking new clients. Instead, 46% of advisors are spending time reassuring existing clients. Over half of advisors (51%) find that clients are “extremely skeptical about the economy and very concerned with future growth."
Yet bringing in clients is still a top concern for advisors. Here’s where they are looking for contacts:
- Referrals from CPAs and accountants: 45%
- Participate in an online social community: 54%
- Actively use social networking as prospecting tool: <5%
While advisors are waiting for more definition on the future of the market, some are making changes to their portfolios. Nearly 40% have added alternative investment options. In addition, these advisors continue to “provide clarity, direction, and new solutions for our clients,” says Mark Matley of the Salt Lake City, UT-based Insight Group. Whether they are seeking to reassure clients or secure new ones, these advisors may turn to addition marketing to improve their standing.
[Source: SEI Survey: New Reality of Advisor-Client Relationship Takes Focus Away from Top-Line Growth. 23 Jun. 2010. Web. 28 Jun. 2010]>