Financial advisors were most concerned about market volatility in Q1 2016, according to the latest Fidelity Advisor Investment Pulse study. Nearly 30 per cent of advisors cited it as an area of focus, a significant rise from less than 20 per cent in the previous quarter.
Survey results also reflected advisors’ increasing attention on the election season and the Department of Labor’s (DOL) investment advice rule1, as developments in the political and regulatory landscape emerged as an important consideration, taking the No3 spot in Q1. The latest results of the quarterly survey were released today by Fidelity Institutional Asset Management, a distribution and client service organisation dedicated to meeting the investment needs of financial advisors, institutions and consultants.
Portfolio management also featured as a top-of-mind-theme for advisors, taking the No2 spot. On the other hand, concerns about interest rates fell significantly, tumbling from No2 in Q4 2015 to the No7 spot in Q1 2016. While approximately one out of every five advisors surveyed in the previous quarter cited interest rates as a concern, the number dropped to fewer than one in ten in the first quarter of this year. Interest rates had consistently been one of the top five topics for advisors every quarter for more than two years.
“There is no question that the market had a volatile start to 2016, so it’s no surprise that volatility was a top concern for advisors in the first quarter, particularly in January,” says Scott E Couto, president, Fidelity Institutional Asset Management. “Volatility can be uncomfortable, but advisors shouldn’t allow short-term events to dictate changes to long-term strategy.
“It is important for advisors to focus on what they can control. This starts by helping clients look at longer-term horizons, and by having a plan to invest through market fluctuations.”
