COVID-19 restrictions not affecting adviser service delivery, report finds

Almost two-thirds of RIAs and broker-dealer advisers — 64% — say that the restrictions put in place to thwart the spread of the coronavirus have not seriously disrupted their business.

According to a survey of 525 advisers in both channels, conducted by Boston-based research and consulting firm Practical Perspectives, most advisers are not making significant changes in how they manage assets or conduct business with clients. The survey, conducted from April 2 to 8, 2020, found that most advisers are confident in their continued ability to serve clients but have mixed expectations for the near-term performance of the equity markets and anticipate lower revenue and profitability.

While few advisers describe the mood of clients as panicked in relation to their investments, more than one in three advisers (37%) cited heightened concern among clients, while 46% indicate moderate concern.

The survey also found that 78% of advisers have reached out to clients and that 83% have made no more than minor changes in how they manage portfolios, including one in three who have not made any changes.

Overall, advisers listed more than 300 sources they relied on for value-add support related to managing the effects of the pandemic. The most frequently mentioned providers were First Trust and American Funds, followed by JPMorgan and BlackRock. Other sources included their broker-dealer, CNBC, Morningstar and the Wall Street Journal.

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