Asset Allocation And Rising Interest Rates Top List Of Advisor Concerns – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading INN Exclusives
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Articles
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be an INNsider.
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
INN Exclusives
INN Exclusives RSS Get our newsletter
Order Prints
May 27, 2014 INN Exclusives No comments
Share
Share
Tweet
Email

Asset Allocation And Rising Interest Rates Top List Of Advisor Concerns

By Cyril Tuohy InsuranceNewsNet

By Cyril Tuohy

InsuranceNewsNet

What’s eating at financial advisors now?

Related stories

  • Inclusion ‘Is A Sense Of Being At Home,’ Speaker Tells NAIFA
  • Help Business Clients Navigate The Return To In-Person Work

Issues surrounding portfolio management and what to do if interest rates rise have become top issues keeping financial advisors awake at night, according to a new survey.

Both topics declined as top-of-mind topics in February but rebounded strongly in March, according to a survey released May 22 by Fidelity Investments.

“We have been tracing advisor sentiment about investing concerns and opportunities for years and have seen dramatic shifts in focus, based on market cycles,” said Scott E. Couto, president of Fidelity Financial Advisor Solutions.

In March, more than 25 percent of advisors considered portfolio management and investment allocation as top-of-mind issues, and nearly 20 percent of advisors considered interest rates as top of mind, the survey found.

Both measures increased as top-of-mind concerns in March over the previous month, the survey found.

Slightly more than 20 percent of financial advisors in March said that issues surrounding bonds and fixed-income were top of mind, down slightly from February, the survey also found. Slightly less than 20 percent of financial advisors said issues surrounding finding yield and generating income were top of mind, also down slightly from February.

Financial advisors, meanwhile, don’t seem worried about inflation. Less than 5 percent of financial advisors indicated inflation was a top-of-mind issue.

“In the first quarter 2014, many financial advisors and their clients were thinking about what to do with their portfolios if interest rates rise,” Couto said in a news release. “Interestingly, they have been less focused on what many consider the ‘flip side’ of rising rates: inflation.”

Rising interest rates make investing in fixed-income portfolios more attractive, but equities have also performed well so far this year. The Standard & Poor's 500 index, which ended Friday at 1,900.53, breached the 1900 level for the first time.

Many economic analysts expect interest rates to rise as the Federal Reserve Bank eases back on its bond buying program. The program, known as Quantitative Easing, was implemented in the wake of the financial crisis to keep interest rates low.

Low interest rates make it easier to borrow and are considered an important tool in spurring a sluggish economy. If the Fed keeps interest rates too low for too long, there is a risk of inflation. High inflation erodes spending power.

In the first quarter, the top five issues on the minds of advisors had to do with portfolio management and investment allocation, bonds and fixed income, market volatility, interest rates, and finding yield and generating income, the survey found.

The quarterly survey is based on responses from more than 200 advisors.

Cyril Tuohy is a writer based in Pennsylvania. He has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected].

© Entire contents copyright 2014 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Older

LISA Celebrates 20th Anniversary Amidst A Vibrant Market

Newer

List Names Top 100 On Social Media

Advisor News

  • Jury finds Lexington investment advisor, guilty of charges related to fraud
  • Chicago investment advisor indicted for allegedly swindling clients out of $683,000
  • Will the family maximum limit my Social Security benefits?
  • South Florida resort sold for $835M, biggest deal for a U.S. hotel since pandemic started
  • Passage of the Secure Act 2.0 brings retirement crisis into focus
More Advisor News

Annuity News

  • $747 million Powerball jackpot still up for grabs
  • Study: Does pessimism really suppress annuity sales?
  • Sweet streams of income: ChatGPT, the bard of annuities
  • F&G Annuities & Life announces equity investment in life IMO SYNCIS
  • Investors scrambling to lock in rates propel annuity sales to record highs
Sponsor
More Annuity News

Health/Employee Benefits News

  • Florida looks to double amount of medical-marijuana licenses
  • Bipartisan group of Missouri lawmakers look to extend healthcare coverage for new moms
  • Medicaid extension for new moms advances amid abortion discussion
  • Medicaid's pandemic benefits are ending
  • Congress has capped Medicare insulin costs. Here’s how it works and what it means
More Health/Employee Benefits News

Life Insurance News

  • In Murdaugh murder trial, the path to conviction remains unclear
  • Libby Murdaugh's caretaker saw Alex night of murders for '20 minutes', but he said '30 to 40'
  • SC judge in Murdaugh murder trial allows jury to hear alleged financial crime motive
  • How the cases in Alex Murdaugh's murder trial are shaping up
  • Testimony: Maggie Murdaugh may have bought gun that killed her
More Life Insurance News

- Presented By -

Top Read Stories

  • Pennsylvania woman sentenced in elderly fraud case
  • NY man sentenced for operating a Ponzi scheme, stole more than $1M
  • A life lesson in success — with John Wheeler
  • For agents and advisors, dispelling LTCI myths is crucial to building sales
  • Fed slows interest rate increases; more hikes expected
More Top Read Stories >

FEATURED OFFERS

Meet Encova Life
We know agents matter. You can count on our life team to be high tech, high touch and responsive.

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.