Even though they are increasingly concerned about their retirement years, fewer investors are changing their portfolio allocations to address continued market volatility.
Only 11% of investors who responded to a new
BlackRock survey said they were adjusting their portfolios when asked in late April and early May 2012. That's a dip from 21% of investors who were making changes a year ago, according to the survey of 353 investors who have financial advisers.
Investors are unclear about what investment directions make the most sense in the current market environment and 91% cite market conditions among the three top risks they face, the survey found.
“Uncertainty is often a crippling factor when it comes to investing and all too often, when uncertain, investors do nothing at all,” said Frank Porcelli, managing director and head of BlackRock's U.S. retail business.
Of the small group making portfolio changes, 42% are moving to equity income investments, an increase from 34% of investors six months ago, according to the survey, which was released Wednesday.
About 20% of investors making adjusting their allocations are moving into alternative investments, while 24% are moving out of alternatives, the survey said. More investors also are moving out of equities as a whole, with 30% moving into stocks and 36% moving out of the sector.
In a separate survey of 377 financial advisers, about 60% said investors understand very little about investing for income and 83% of advisers said clients think “bonds” when they bring up the topic. That survey also was released Wednesday by BlackRock.
“Investors are reaching out to advisers to understand what to do, how to invest for income in this new world,” said Rob Kron, head of retirement and investments education at BlackRock. “Advisers should be making sure client portfolios are more dynamic and diverse than they have been in the past.”
Investors also are increasingly concerned about retirement, with 46% saying they are thinking about retiring later, compared to 30% of investors who said they were thinking about working more years when asked a year ago.
In addition to more people delaying their retirement, they are planning to spend less during their golden years, said Mr. Kron.
