For asset managers to stay relevant, it’s essential that they keep their fingers on the pulse of advisors’ concerns. Understanding what’s keeping advisors up at night, especially in turbulent market environments, enables firms to create timely content, guide wholesalers’ conversations with their clients and ensure their product development efforts align with advisors’ needs.
In SS&C’s recent advisor survey, conducted in association with Horsesmouth, we asked advisors to identify their most pressing investment-related concerns over the next 12 months. Unsurprisingly, inflation topped the list across all advisor business models, chosen by the highest percentage of advisors (33.1%) as their #1 concern, as well as by the highest percentage of advisors (71.5%) as a top three concern over the next 12 months. More notable is the extent to which advisors’ worries about inflation currently outweigh all other investment-related concerns. More than twice the number of advisors chose inflation as their #1 concern compared with the second most frequently selected option, asset preservation—which, of course, is closely tied to inflation.
Advisors’ most pressing investment-related concerns over the next 12 months (#1 selection)
Source: SS&C Advisor Insights survey, conducted in association with Horsesmouth (n) = 1,108
Interestingly, asset preservation falls slightly further down the rankings when it comes to advisors’ top 3 most pressing concerns, with more advisors choosing both interest rates (49.2%) and geopolitical issues/risks (42.5%) as top 3 items compared with asset preservation (40.6%).
Advisors’ most pressing investment-related concerns over the next 12 months (top 3 selection)
Market growth and income generation, two issues that are typically top-of-mind for advisors, are still important, but—in advisors’ minds—have taken a back seat to issues connected directly with today’s volatile market conditions.
Given these priorities, there are a variety of ways asset managers can support advisors; for example:
- Providing portfolio construction support tailored to a higher inflation, and higher interest rate environment.
- Creating content that addresses advisors’ concerns, such as research discussing the current drivers of inflation and expected trends/developments.
- Creating investor-friendly content that advisors can use to help their clients manage anxiety around issues like inflation and geopolitical risks.
- Equipping wholesalers with talking points about products and strategies that can help advisors preserve client assets in an inflationary environment.
Providing the right resources at the right time can help assuage advisors’ concerns, and is a great way for firms to build trust and loyalty with their valued clients. Contact us to learn more.