Russell Investments has released its quarterly survey, the Financial Professional Outlook, which found that 74 percent of advisors want more resources to help communicate their value to clients, as many feel the need to justify their fees.
Sixty-five percent of advisors want more resources to help educate clients about realistic return expectations. And 63 percent said they need resources to help keep clients focused on their long-term goals during volatile periods.
Nearly three-quarters of advisors (72 percent) would like additional resources to help acquire retired or almost-retired clients, while only 39 percent said they were looking for help in acquiring younger clients.
Advisors surveyed said that the top two client-initiated conversations were about market volatility (54 percent) and their concerns about government policy (53 percent). Those were followed by global events (35 percent) and their fear about running out of money in retirement (34 percent).
Eighty-two percent of advisors said they were optimistic about the equity markets over the next three years. However, only 25 percent said that their clients felt the same optimism.
Russell suggests advisors focus on building a diversified mix of clients by age and assets and cautions against ignoring the next generation of investors. Advisors should also help their clients focus on what really matters to them, says the firm. If they do this right, clients will understand the value of the advisory relationship.
Russell Investments conducted the survey of 150 financial advisors in June.