“The active versus passive discussion has evolved beyond an either-or decision,” Sommer said. “With the prospect of higher-for-longer interest rates casting a shadow over future economic growth, investors are increasingly turning toward active management to mitigate risk in their portfolios and differentiate between good and bad companies as higher capital costs create new competitive challenges.”
Advisors can use a range of methods to keep in touch with their clients, according to the survey.
Among the ways in which investors have communicated with their advisor during the past six months, telephone (68%), in-person (54%) and email (53%) were the most common methods. Just 28% of investors reported interacting with their advisor by video conference, however, the majority (52%) said they would be comfortable using video conference technology.
“As video conferencing becomes more entrenched in our everyday lives, geographical barriers are being diminished, providing advisors with an opportunity to tap into a much broader circle of friends, family members, entrepreneurs, and successful professionals as potential clients or referral sources,” Sommer said. “Investing in technology that delivers a seamless and frictionless experience for clients and prospects will be pivotal for (advisors’) future growth.”
An almost equal number of investors (34%) feel fearful about their finances as those who feel confident they can achieve their goals (36%).
Even though a significant number of investors said they are confident in their financial situation, 71% said investing has become more challenging over the past few years and nearly as many (61%) indicated that the cost of living is rising faster than their income and investments.
The survey showed that across all generations, investors’ appetite for improving their financial know-how is strong, as 86% of investors are very interested or somewhat interested in increasing their financial knowledge. A desire to learn was particularly robust among younger investors with 96% of both millennials and Gen-Xers express meaningful interest in improving their financial education.