Advisers reaching out to clients in wake of Japan disaster

Investment advisers took to their phones or e-mail to answer client concerns about the possible effect of the crisis in Japan on their investments and on the U.S. recovery in general, according to an InvestmentNews website poll conducted this week.
MAR 25, 2011
Investment advisers took to their phones or e-mail to answer client concerns about the possible effect of the crisis in Japan on their investments and on the U.S. recovery in general, according to an InvestmentNews website poll conducted this week. The crisis in Japan began with a March 11 earthquake and escalated after a massive tsunami wiped out towns on the northeast coast and triggered radiation leaks at nuclear power plants along the coast. Around 65%, or 149 of 228 who responded, said they have reached out to reassure clients in the wake of the disaster. Around half, or 117 of 246 who answered a second question about client behavior, said clients have initiated calls to them to express concern. The general tenor of calls was concern over how their portfolios are standing up to the downturn in Japan-related investments and whether the crisis will derail the economic recovery under way in the United States. Most advisers, 81%, or 184 of 227 who answered, said they do not believe that the crisis will derail the recovery. Around 10%, or 23, said it will derail the recovery, while 20, or just under 9%, said they do not believe that a U.S. economic recovery is under way. Advisers themselves mostly are taking a wait-and-see attitude to readjusting their investment allocations, with 77%, or 171 of 222 respondents, saying they're keeping clients' equities allocations about the same. A smaller number see a buying opportunity; 13%, or 29 advisers, said they have increased their equities allocation, while 10%, or 22, said they've reduced it. The survey was conducted online at InvestmentNews.com from Wednesday, March 16, through Friday, March 18. A total of 290 respondents identifying themselves as financial advisers, planners or brokers answered at least one question.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management