Traditional advisors are also slowly adopting digital advice technology. Twenty percent of the survey’s respondents will add robo-advisors in 2016.
Advisors are furthermore concerned about the future of their practices. Their average client is around 62 years old. They’re watching people go into drawdown and not adding new assets into their portfolios, and account values are stagnating or declining.
“I think a lot of people are looking at their book of business and saying it’s time to circle the wagons,” Anderson says.
The impact of the Fed’s recent rate hike and uncertainty about the path of interest rates are also weighing on advisors. Eighty percent told SEI that they will explore managed volatility investment strategies. Respondents also said they would explore more tactical or dynamic investment options for clients.
“After seven years of an up market, we know there’s going to be some volatility,” Anderson says. “Advisors are telling us that they foresee a year without as much growth potential as there has been recently.”