Research

Client Outlook

Independent Advisor Outlook Study

Nearly 9 in 10 advisors reported bringing in new assets during the past six months, and almost half came from full-service firms. That is a key finding from the sixth wave of the semi-annual Independent Advisor Outlook Study conducted in July 2009.

 

Among the 89% of Registered Investment Advisors (RIAs) surveyed who reported bringing in new assets, the following were the primary sources:

  • 45% from full-service brokerage firms
  • 32% from other firms or financial professionals
  • 23% from clients who previously managed their own portfolios

 

New Assets During Past Six Months              

Average Percent of New Assets

from Each Source-July '09
All Respondents Those with New Assets in the Past Six Months

 

New Assets

Reasons for Leaving Full-Service Firms

Why did clients leave full-service brokerage firms? Among the reasons cited in the survey:

  • Lost trust in previous firm (68%)
  • Wanted more personal advice (59%)
  • Lost money during past six months (50%)
  • Knew people who had good experiences with independent advisors (33%)

 

Taking Action

Advisors estimate that 43% of clients still require reassurance, and about a third of advisors have been rebalancing client portfolios more frequently than six months ago. 

 

Clients' Activities-July '09

All Respondents

Clients' Activities

  

The RIAs surveyed also see their clients taking various actions to manage expenses in the current environment.

  • Two-thirds of clients are considering making short-term cuts in expenses.
  • 4 out of 10 clients are considering reductions in fundamental expenses, such as downsizing their primary residence.
  • Nearly a third of clients are drawing down existing savings and assets.