Potential tax reform was a fulcrum for anxiety and optimism among the respondents. Most of the advisors, 76 percent, were talking about the implications of tax reform for client portfolios, generally in positive terms, as 84 percent of the respondents anticipate that tax changes would positively impact their clients. Approximately two-thirds of respondents, 65 percent, felt like tax reform was at least one to two years away.
Advisors also noted that environmentally and socially responsible investing is becoming a larger part of their profession. More than three-quarters of the respondents, 78 percent, are currently engaging in responsible investing. Most advisors, 90 percent, felt the current political climate influenced client interest in responsible investing.
Two-thirds of the advisors, 76 percent, said that they’re exploring responsible investing to better align investments with client values. According to the respondents, clients seem most engaged with investing in clean energy, followed by sustainability, climate change, human rights, water issues and consumer protection.
Eaton Vance reports that the respondents are generally less focused on generating income than they were a year ago, but 43 percent said that they feel like income generation has increased in importance over the past 12 months, and 74 percent plan to alter their approaches to generating income if interest rates rise.
The respondents looked first to dividend-paying equity funds for investment income, then to municipal bonds, with high-yield fixed income coming in third.
Eaton Vance sponsored a survey of 1,005 advisors in June and July.