Survey: Asset growth came from consolidation

Financial advisers said that clients increasingly consolidated their assets during the market decline, according to a survey released today by Fidelity Investments.
MAR 19, 2009
Financial advisers said that clients increasingly consolidated their assets during the market decline, according to a survey released today by Fidelity Investments. Nearly half, or 49%, of the advisers surveyed said that they are seeing growth in assets as a result of consolidation, Boston-based Fidelity found. The online survey of 200 advisers and 300 investors was conducted by Harris Interactive of Rochester, N.Y., between Feb. 20 and March 6. “People are continuing to consolidate assets with advisers who serve more holistic needs,” Charles Goldman, president of institutional platforms at Fidelity, said in an interview. “Ninety-six percent of advisers feel this environment has positioned them well for business growth,” he said. “Investors need help and guidance.” Nearly one-third, or 32%, of investors surveyed said that their financial planners or brokers helped minimize their investment losses. Twenty-four percent said that they thought that their advisers didn’t help minimize losses. The investors reported that their investments lost 27% on average between Aug. 27 through Feb. 27, compared with a 43% decline for the Standard & Poor’s 500 stock index during the same period. A key issue going forward is risk. More than half of advisers, or 52%, said that they are reassessing their clients’ risk tolerance, and 47% said that they are discussing strategies to mitigate risk. Among investors, 37% said that they plan to discuss risk strategies with their advisers. Fidelity continues to enhance its adviser platforms, Mr. Goldman said. This year, the firm plans to launch new capabilities to give advisers access to trading in global securities — including stocks, bonds and futures — and will include them on their client statements, he said. Fidelity had more than $2.5 trillion in assets under custody, including managed assets of more than $1.2 trillion, as of Jan. 31.

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