OAKS, Pa., Dec. 19, 2018 /PRNewswire/ -- As financial
advisors look to 2019, an overwhelming majority expect a downturn
in the market over the next two years and want to prioritize
attracting and retaining high-net-worth (HNW) clients, according to
a recent survey conducted by Independent Advisor Solutions by SEI
(NASDAQ: SEIC). The survey gathered responses from 466 financial
advisors, who indicated that economic factors, such as the market
downturn and geopolitical uncertainty, are top concerns in the
coming year. Advisors also aim to improve their businesses by
enhancing the client experience and growing their advisory
teams.
"This year's survey reveals that goals and resolutions align
with the continued evolution toward greater demand for personalized
advice and service," said John
Anderson, Managing Director and Head of Practice Management
Solutions at Independent Advisor Solutions by SEI. "Through a
personalized financial plan, clients are more likely to understand
how market events impact short-term and long-term goals. With the
outlook revealed today, advisors need to be laser-focused on
providing the optimal client experience and preparing their
businesses to best serve their clients during volatility in the
near term, as well as into the future."
Market Worries
In considering financial advisors' outlook for the coming year,
the majority (77 percent) expect a market downturn over the next
two years, with 33 percent predicting it will come in 2019 and 44
percent predicting it will occur in 2020. Only 13 percent of
advisors believe the markets are clear of a downturn in the near
future. When asked what economic factor worries them and their
clients the most as they head into 2019, 38 percent of advisors
said a "big market correction," followed by "geopolitical
uncertainty" (25 percent) and the "trade war" (14 percent). Only 13
percent of advisors ranked "rising interest rates" as a top worry,
implying political pressures and sentiment in the United States are triggering concerns.
Goal-setting and Resolution Revelation
With economic concerns top of mind, 25 percent of financial
advisors ranked attracting and retaining more HNW clients as their
number-one goal in 2019. Meanwhile, 23 percent of financial
advisors said their top goal is to increase client referrals, and
22 percent said technology workflow implementation to increase
efficiencies in their practice was first on the list. When asked
what large investment they would make to improve their businesses
in 2019, 28 percent of financial advisors said they want to enhance
the client experience, 25 percent said growing their advisory team,
and increasing the marketing budget and acquiring another firm came
in at 18 percent and 17 percent, respectively.
Top five goals in 2019:
- Attract and attain more HNW clients
- Increase client referrals
- Implement technology workflows to increase efficiencies in my
practice
- Conduct more outward-facing marketing activities
- Grow by acquiring other advisor firm(s)
From a competitive standpoint, most advisors (43 percent)
resolved to increase client educational events and resources for
clients in the New Year. When asked to take a longer view, 36
percent of advisors resolved to take advantage of more millennial
investors looking for advice over the next one to two years.
Top five New Year's resolutions for 2019:
- Increase client educational events and resources for my
clients
- Take advantage of more millennial investors looking for
advice
- Increase digital marketing channels
- Build a center of influence
- Grow by acquiring other advisory firms
Tomorrow's Trends
According to the survey, financial advisors (34 percent)
identify the increasing shift away from a product-based business
model to an advice-based one as the trend that will impact and
change the financial advisory industry the most in the next five to
10 years. Coming in second place, increased regulation and
compliance oversight was cited by 26 percent of respondents as a
trend to watch.
In a separate research report conducted by SEI and the Financial
Planning Association®, 63 percent of HNW investor
respondents said they find high value or very high value in an
advisor who personalizes advice¹. Given financial advisors' top
goal is to attract and retain more HNW clients, the advice-based
trend is consistent with what HNW clients are looking for in
advisory services.
1Source: CEB 2018 Client Experience Survey; n=253
Methodology
SEI conducted the financial advisor survey online from
Nov. 28, 2018 to Dec. 12, 2018. The survey generated responses
from 407 independent financial advisors, representing clients and
non-clients of SEI. SEI also received responses from more than 59
financial advisors, after conducting the survey at its National
Strategic Advisor Conference in October and November 2018.
About The SEI Advisor Network
The SEI Advisor
Network, now Independent Advisor Solutions by SEI, provides
independent financial advisors with wealth management services
through outsourced investment strategies, administration and
technology services, and practice management programs. It is
through these services that SEI helps advisors save time, grow
revenues, and differentiate themselves in the market. With a
history of financial strength, stability, and transparency, the SEI
Advisor Network has been serving the independent financial advisor
market for more than 25 years, has 7,500 advisors who work with
SEI, and $67.1 billion in advisors'
assets under management (as of Sept. 30,
2018). The SEI Advisor Network is a strategic business unit
of SEI. For more information, visit seic.com/advisors.
About SEI
After 50 years in business, SEI
(NASDAQ:SEIC) is a leading global provider of investment
processing, investment management, and investment operations
solutions that help corporations, financial institutions, financial
advisors, and ultra-high-net-worth families create and manage
wealth. As of Sept. 30, 2018, through
its subsidiaries and partnerships in which the company has a
significant interest, SEI manages, advises or administers
$920 billion in hedge, private
equity, mutual fund and pooled or separately managed assets,
including $339 billion in assets
under management and $576 billion in
client assets under administration. For more information, visit
seic.com.
Company
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Media
Contact:
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Meredith
Mitchell
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SEI
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Prosek
Partners
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646-818-9268
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lwojcik@seic.com
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mmitchell@prosek.com
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SOURCE SEI