Advisors communicated with clients more frequently and felt more pressure to keep clients satisfied in 2011 vs. 2010, according to the results of an SEI Quick Poll released Thursday. And while 2011 was a year of worry for both investors and advisors, it was also an opportunity: 40% of advisors surveyed said their firms grew by more than 10% in 2011 in terms of net new assets, and 12% said their practices expanded by more than 20%.
“Everyone knows the market volatility unnerved investors in 2011. But, in reality, it also rattled financial advisors as well,” said Steve Onofrio, managing director of the SEI Advisor Network, in a press release. “While some were distracted by the market volatility, the best advisors continued to focus on what investors want and need–personal communication. And it isn’t simply a matter of increasing communication; advisors also need to focus on delivering quality content in a consistent and deliberate manner.”
Due to intense market volatility, advisors said many clients realized “they’re not as risk tolerant as they originally thought,” according to the SEI poll, which was conducted in December and included the views of 200 financial advisors.
The results also showed that a large number of advisors, 53%, believe their clients’ mindset could best be described as “apprehensive,” and managing volatility was the most popular investment strategy in 2011.