What You Have to Know
- Multi-year assured annuities might assist advisors entice these belongings, Safety Profit and DPL Companions recommend.
- Solely 13% of advisors mentioned that their purchasers are very or extraordinarily involved a few main fairness downturn.
- A majority of advisors mentioned that asking for referrals stays their most vital prospecting technique.
Registered funding advisors have combined views on how November elections will have an effect on the financial local weather, in keeping with Safety Profit’s RIA benchmark examine, launched Wednesday.
The examine additionally discovered advisors are eyeing up their purchasers’ financial savings accounts for potential asset progress.
With volatility a continuing for RIAs and their purchasers, the examine discovered that 41% of RIAs predict a impartial impact, 39% foresee a internet damaging one and 20% anticipate a internet constructive impact.
The brand new examine expands on findings from Safety Profit’s RIA Financial Outlook Index, which it rolled out earlier this 12 months in partnership with Greenwald Analysis and DPL Monetary Companions. The quarterly index’s inaugural version established a benchmark measurement of 58 (on a scale of 0 to 100) for RIAs’ present stage of optimism about financial circumstances.
Half of RIAs consider that their purchasers are glad, the examine discovered, and 37% that they’re very glad with their investments. Solely 13% of advisors mentioned that their purchasers are very or extraordinarily involved a few main fairness downturn.
Fifty-one p.c of RIAs allotted extra to equities prior to now 12 months, whereas 47% elevated their allocations to long-duration fastened devices and 45% put extra into short-duration fastened devices.
RIAs see a possibility to draw shopper cash at the moment held in financial institution financial savings merchandise, in keeping with the examine.
Fifty-two p.c of advisors mentioned {that a} quarter of their purchasers have at the least $100,000 in a financial institution financial savings account, and 82% of those advisors consider that they may entice a lot of that cash in the event that they have been capable of provide an modern funding with aggressive rates of interest for a assured interval.
For the examine, Greenwald Analysis surveyed in February 201 registered funding advisors from throughout the US, every managing vital belongings and straight interacting with purchasers.
RIAs Enhance Annuity Allocations
RIAs within the survey mentioned that they’re eyeing multi-year assured annuities to lock in present rates of interest. These CD-like merchandise provide accumulation potential for purchasers by delivering a assured rate of interest that’s uncorrelated with equities.