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For immediate release, 06/27/2016

Market Volatility Drives RIAs, Fee-Based Advisors and Investors to Adapt; Alternatives and Tactical Management are Top Solutions

 

Louisville, KY – June 27, 2016 – In a special report that takes a 360-degree view on volatility—its causes and the solutions successful advisors are using to protect against it—Registered Investment Advisors (RIAs), fee-based advisors and individual investors say that ongoing volatility is among the top three macro issues that will most adversely impact portfolios over the next 12 months, while alternatives and tactical management are among the leading solutions and strategies used by advisors. These are among the findings from Jefferson National’s second annual Advisor Authority study conducted by Harris Poll, based on a comprehensive survey of 1,400 RIAs, fee-based advisors, and individual investors.

“As volatility rises, so does the need for holistic, guided advice of unbiased advisors who put clients’ best interests first,” said Mitchell Caplan, CEO of Jefferson National. “As our second annual Advisor Authority reveals, RIAs and fee-based advisors are taking action against the corrosive impact of volatility, using tactical management and alternative strategies to protect clients’ portfolios now and preserve their assets for the future.”

 

Causes of Volatility

RIAs, fee-based advisors and investors agree that volatility is likely to rise—aggravated by politics in the U.S. as well as economics both at home and abroad. More than three-fourths (76%) of all advisors anticipate that volatility will increase in the coming year. Nearly two-thirds (63%) of all investors anticipate that volatility will increase. Likewise, when asked to rate the top drivers of volatility, advisors and investors are closely aligned:

Advisors’ Top Four Drivers of Volatility:

Investors’ Top Four Drivers of Volatility:

  • Energy prices: 34%
  • U.S. Presidential Elections: 36%
  • U.S. Fed Policy: 32%
  • Energy prices: 33%
  • U.S. Presidential Elections: 30%
  • Instability in China’s market: 25%
  • Instability in China’s market and rising interest rates: 21%
  • U.S. Fed Policy: 23%

 

Solutions for Volatility

Nearly two-thirds (62%) of all RIAs and fee-based advisors feel pressure to revise their investing strategy in the current volatile market—and the most successful advisors feel it more. Investors are less pressured to change their investing strategy—41 percent feel pressure, while 44 percent do not, and 15 percent don’t know or are not sure. Of those who felt pressure to revise their strategy, 75 percent of advisors and 72 percent of investors plan to invest more tactically, while 69 percent of both advisors and investors plan to invest more conservatively.

Alternatives are identified as an important solution in today’s volatile market, and the most successful advisors are more likely to use them. Nearly half (48%) of RIAs and fee-based advisors rate Alternative Mutual Funds and ETFs—such as those using a long-short equity, managed futures and multi-strategy approach—as their number one solution. More than half (53%) of High AUM Advisors and the majority (60%) of High Earning Advisors rate alternatives Mutual Funds ETFs their number-one solution.

“When it comes to investing, protecting clients’ portfolios and protecting their own practice, ongoing volatility remains the number one concern of RIAs and fee-based advisors year over year—while investors are aware of volatility’s impact, they say that protecting assets is their number-one concern,” said Laurence Greenberg, President of Jefferson National. “This year’s Advisor Authority highlights these distinctions to provide actionable insights for all advisors at every level to build a more effective practice and to create greater value for their clients.”

Jefferson National’s second annual Advisor Authority study addresses many more of the investing and advising issues confronting RIAs, fee-based advisors and investors—and the innovative techniques that they need to succeed in today’s volatile market, with a special focus on the most successful advisors and the most affluent investors.

 

To download a copy of Advisor Authority, financial professionals can visit: www.jeffnat.com/advisorauthority.

 

 

 

Media Relations
JeffNat Deborah Newman 502.587.3858

Methodology

The second annual Advisory Authority Survey was conducted online within the United States by Harris Poll on behalf of Jefferson National from March 3 - 29, 2016 using a sample from the Harris Poll Panel of Financial Advisors and investors. Among the 683 Financial Advisors, there were 440 Independent Registered Investment Advisors and 243 Broker/Dealers. Among the 733 Investors, there were 167 Mass Affluent, 184 Emerging High Net Worth, 199 High Net Worth and 183 Ultra High Net Worth.

 

Respondents for this survey were selected from among those who have agreed to participate in Harris Poll surveys. Because the sample is based on those who were invited to participate in the Harris Poll online research panel, no estimates of theoretical sampling error can be calculated. A complete survey method, including weighting variables, is available upon request.

About Harris Poll

Over the last five decades, Harris Polls have become media staples. With comprehensive experience and precise technique in public opinion polling, along with a proven track record of uncovering consumers’ motivations and behaviors, Harris Poll has gained strong brand recognition around the world. Contact us for more information.

 

About Jefferson National

Jefferson National is a recognized innovator of a leading tax-advantaged investing solution for RIAs, fee-based advisors and the clients they serve. Trusted partner to a network of more than 3,500 advisors, Jefferson National provides greater efficiency, transparency and choice through an adaptable technology platform, award-winning distribution strategy and cost-effective servicing capabilities. Named the industry “Gold Standard” and winner of more than 50 industry awards, the company serves advisors and their clients nationwide through its subsidiaries Jefferson National Life Insurance Company and Jefferson National Life Insurance Company of New York. To reach our advisor support desk, please call 1-866-WHY-FLAT (1-866-949-3528). Learn more at www.jeffnat.com.