How Financial Advisors Are Responding to the Challenge of the Coronavirus - Q2 2020

We understand that these are challenging times for financial advisors and their clients. The fallout from the coronavirus pandemic has caused unprecedented disruption and hardship on both a micro and macro level. The long-term implications of the virus remain unclear, but there is little doubt that the impact will be far-reaching, influencing our economy, our social consciousness, and our daily way of life.
 
Our goal in this new report from Practical Perspectives - a leading consulting and research firm focused on support for wealth management firms, product providers, and distribution platforms - is to share a point in time snapshot of how financial advisors are responding to the challenges posed by the coronavirus. “How Financial Advisors Are Responding to the Challenge of the Coronavirus” examines a variety of topics including how advisors are engaging with clients, the sources they are relying on to navigate through this unpredictable environment, and their needs for additional support. The report breaks out data and findings for the entire sample and for key advisor channels – Wirehouse/Regional employer based broker dealers (Full Service), Independent broker dealers, and RIAs (not affiliated with a broker dealer).

For a complimentary copy of the report, go to the In-Depth Reports tab and download the document. 
 
Among the key questions addressed in this report are:
 

• The extent to which restrictions put in place to combat coronavirus have impacted the ability of advisors to serve clients
• How advisors perceive the overall mood of clients related to investing
• How proactive have advisors been in reaching out and communicating with clients
• The specific actions advisors have taken to communicate with clients regarding the market volatility triggered by the coronavirus
• The sources advisors rely on for information or tools to support clients during this difficult time
• The resources that are most useful for advisors in engaging with clients
• Specific providers or sources advisors rely on most for assistance
• The extent advisors have changed how they manage assets for clients in response to market volatility associated with the coronavirus
• The specific changes to client portfolios implemented by advisors
• Advisors confidence in their ability to meet the needs of clients in the current environment
• Looking ahead six months from now, advisor expectations for the performance of financial markets
• How advisors anticipate the coronavirus will impact key metrics in running a practice such as new client acquisition, revenues, and profitability
• The topics of most interest to advisors regarding additional support for coping with issues triggered by the coronavirus

 
This report is based on input from a randomly selected cross-section of advisors spanning key channels. From April 2 to April 8, 2020, advisors were asked to participate in a proprietary online survey regarding their response to the coronavirus. More than 525 advisors provided confidential responses that form the basis for this report. Advisors did not receive any compensation for participation in the survey. A breakout of respondents by key characteristics is as follows:
 

• Affiliation
  • Full Service BD - 20%
  • Independent BD – 42%
  • RIAs – 36%
  • Other BD – 1%

 

• Experience as an Advisor
  • Less than 5 years – 1%
  • 5 to less than 10 years – 9%
  • 10 years to less than 15 years – 13%
  • 15 years to less than 20 years – 17%
  • 20 years or more – 60%

 

• Assets Under Management
  • Less than $50 million – 37%
  • $50 million to less than $100 million – 21%
  • $100 million to less than $250 million – 23%
  • $250 million or more – 19%

 

• Practice Structure
  • Solo practitioner – 50%
  • Small team (10 or fewer professionals) - 43%
  • Large team (more than 10 professionals) – 7%

 

• Age
  • 40 or younger – 12%
  • 40 to 50 – 22%
  • 50 to 60 – 29%
  • 60 or older – 37%