Russell Advisor Survey: Clients Risk Falling Short of Goals

In addition, the survey shows an uptick in planned allocations to value-oriented U.S. equity asset classes (up 7%) as well as to real estate (8%). On the flip side, 39% and 43% of advisors plan to decrease their allocation to corporate and high yield bonds respectively, an increase of 9 points since March 2010 in both instances.

“An increasing allocation to U.S. value equity at this time could be perceived as a flight to quality amid recent global volatility because, despite the havoc the economic events of the past couple of years have wreaked on the U.S. economy and its future prospects, the United States remains the dominant economy today,” Rogerson said.

Most advisors indicated they will respond to regulatory changes by “seeking advice from compliance officers/hierarchy” (62%), “reassessing their clients’ situations, risk tolerances and goals” (48%), and “explaining changes to clients” (40%).

“I expect the cost of compliance to go up significantly,” said Jason Anderson at Wilbanks Securities, Inc., in a statement.

Looking ahead to year-end revenue goals, advisors considered a lack of qualified leads and referrals (23%) a key impediment to reaching revenue goals, followed by the fact that clients remain on the sidelines (cash) due to market concerns (22%). Advisors also cited increased regulatory oversight and compliance requirements as a significant obstacle (19%).

In a recent article entitled “Assessing the Health of Your Business,” Kevin Bishopp, Russell’s practice management consultant, outlines a framework to help advisors evaluate their business’ health and strategies to address potential revenue shortfalls. Plus, he offers recommendations for fundamental changes that can help attract new clients and better position a business for the long-term.