Most financial advisors expect their businesses to grow in 2011 at a brisk pace, according to the latest Financial Professional Outlook survey sponsored by Russell Investments. Of the 800-plus advisors surveyed in the quarterly poll, nearly a third (31 percent) predict revenue growth of 10-14 percent this year and almost half (44 percent) expect to see revenue growth of 15 percent or more in 2011.
“The latest survey results convey a renewed sense of confidence and optimism amongst advisors, about not only the capital markets but also their own businesses,” said Kevin Bishopp, director of practice management for Russell’s private-client services business, in a press release. “While the global economic recovery continues slowly, investor panic has largely subsided,” Bishopp explained, “and advisors are now able to shift their focus back to meaningful long-term planning and wealth accumulation instead of triaging client concerns and addressing their anxieties.”
The majority of advisors (86 percent) are optimistic about the capital markets over the next three years, up from 59 percent in December 2010, and 36 percent feel their clients are optimistic about the capital markets in the coming years vs. 7 percent in the last quarter of 2011.
When asked for the reasons behind their anticipated business growth, 72 percent of respondents said new client acquisitions are a key contributing factor. Of the advisors expecting revenue growth of at least 15 percent this year, 88 percent said new client acquisitions are the primary growth driver.
Nearly half of the advisors surveyed (49 percent) believe generating more revenue from existing clients will drive revenue growth.