RIA clients rattled by mercurial markets
Market volatility and risk have overtaken wealth accumulation as the top concern of RIA clients, according to a…
Market volatility and risk have overtaken wealth accumulation as the top concern of RIA clients, according to a survey conducted by Cogent Research for Invesco.
Among the 206 registered investment advisers surveyed in September, Cogent found that 70% cited market volatility as the top concern among their clients, followed by 23% who placed retirement planning first and just 6% who said wealth accumulation was most important.
“Given their clients’ current mindset, 45% of RIAs said managing risk is now their top priority in terms of portfolio construction, ahead of wealth preservation (24%), exceeding a performance benchmark (12%) and delivering absolute return (10%),” said Andrew Scherer, managing director of Invesco’s RIA division.
In terms of portfolio construction, the survey found that RIAs are increasingly blending actively managed products with exchange-traded funds to meet long-term financial needs and to manage risk, Mr. Scherer said.
“RIAs indicate that ETFs will represent 22% of client portfolio’s, on average, over the next year and 30% of portfolios by 2014,” he said.
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