Employers and workers will be happy to learn that the majority of financial advisers are either “cautiously optimistic” or “optimistic” about the stock market in 2010, according to an online poll by the SEI Advisor Network.

In January, the Pennsylvania-based firm surveyed 442 financial advisers about their views on 2009 and their plans for 2010. Overall, respondents were positive. For example, 70% of advisers project a 0% to 10% gain performance for a diversified 60% equity/40% bond portfolio, while 63% of advisers believe that recent market upswings will entice investors back into the market.

The 2008-2009 stock-market bubble meant that financial advisers were spending more time with their clients. Nearly 70% of respondents report that they communicated more frequently with clients in 2009, compared to other years.

“Investors of all types became increasingly aware of market risk and I spent more time re-educating clients on the benefits of a properly diversified investment approach in order to attain their long-term goals,” says Michael Ferman, head of Rubin Brown Advisors of St. Louis, Missouri. “Regardless of what the market was doing, this helped me forge deeper client relationships and build their level of trust,” he adds.

Other findings from the poll include:

• About 60% of advisers said the most challenging part of 2009 was the “continued pay cut due to market depreciation;”
• Forty-five percent of advisors said clients are not as risk tolerant as originally thought;
• Nearly 73% of advisers said managing business risk now takes more time;
• Sixty-seven percent said regulatory compliance has become a key emphasis and that they plan to change processes and procedures; and
• About 50% said they plan to improve technology.

“This poll shows the true impact of the financial crisis that started in 2008 – advisers are looking for new ways to make their business more secure and more successful,” says Stephen Onofrio, head of sales and service, SEI Advisor Network. “Advisers that identify and implement best-practices in processes, procedures and technology will win the race for investor confidence and grow assets,” he adds.

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