RIAs are feeling good and looking to grow, according to a report released at the end of January by TD Ameritrade. The Advisor Index Study found advisors are more optimistic about the economy than they have been in the past five years.
Nearly half of advisors see the market leveling out and ending 2014 with little change, but 38% think stocks will continue to rise. More than 40% think bond prices will start to fall.
Consequently, advisors are moving their clients out of fixed income and into equities. Equities accounted for 54% of client portfolios, up from 48% a year ago. Bond allocations fell from 27% of portfolios to 23%.
Three-quarters of RIAs expect to increase their assets under management at least as fast as they did last year, when AUM increased 20%. More than 30% think AUM will grow even faster.
“After another year of double-digit growth on all fronts, advisors have greater enthusiasm about their prospects,” Tom Nally, president of TD Ameritrade Institutional, said in a statement. “They’re building on last year’s momentum and serving clients better by making strategic investments in people and technology.”