Regulatory issues didn’t top the list of adviser focus areas in the second quarter, but it did gain ground on that list, according to a new report.
In the second quarter, 27% of adviser respondents focused on portfolio management, 23% concerned about market volatility, and 21% keeping an eye on regulatory and political developments. Across the first half of the year, portfolio management was the No. 1 theme, according to the latest Fidelity Advisor Investment Pulse study with more than 26% of advisers surveyed citing it as an area of focus.
This was (very) closely followed by market volatility (nearly 26%) and developments in the regulatory and political landscape (18%).
The report notes that framing portfolio discussions using the tactical, business cycle, and secular lenses may help advisers debunk the myth that there is one optimal portfolio. As advisers use multiple time horizons to look beyond immediate developments like the Department of Labor’s investment advice rule, Brexit and the U.S. election campaign, they may be able to develop a disciplined and differentiated approach to portfolio management.
The report recommends that advisers set their own guardrails around three time horizons (tactical,1-12 months, business cycle, 1-10 years, and secular, 10-30 years). Moreover, it notes that some advisers update their secular views annually, their business cycle views weekly, and their tactical views on a daily basis.
The Fidelity Advisor Investment Pulse is a survey that captures the investment topics on the minds of around 250 advisers. Fidelity has been tracking adviser sentiment about investing concerns and opportunities since April 2012.
