Investment advisors are repositioning their business strategies to stay ahead of the market downturn. A recent Rydex AdvisorBenchmarking survey shows 61 percent of advisors are planning to automate certain tasks; forty-five percent plans to focus on a specific client base; and 39 percent plans on investing in employee training. Only 11 percent has no plans to change their current practice models.
“As the nation’s current financial situation worsens, advisors are exploring different avenues to offset any losses in revenue and to ensure that they are being as efficient and productive as possible,” says Maya Ivanova, research manager for Rydex AdvisorBenchmarking.
Amid market conditions, RIAs emphasize alternative investments, according to the survey, especially for retirement income planning.
“Alternative investments have historically demonstrated a low correlation to traditional stock and bond assets,” says Ivanova. “We’re seeing both advisors and their clients look to alternatives for their potential to mitigate risk and enhance returns through diversification.”