This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SEI Survey: Advisors More Optimistic About 2011 Than Their Clients

OAKS, Pa., Jan. 13, 2011 /PRNewswire/ -- Financial advisors are more optimistic about the economy than their clients heading into 2011, according to an SEI (Nasdaq: SEIC) Survey released today. Nearly one-third (30 percent) of advisors said they are "optimistic" heading into 2011; however, only 3 percent of advisors surveyed said their clients were optimistic. The advisor optimism is reflected in stock market projections among this group; more than half of advisors surveyed (60 percent) expect a stock market gain of greater than 7 percent. Advisors are also optimistic that 2011 will be a better year for their businesses than 2010.

"The markets have improved and the consensus in the industry is that things will continue to look up. The challenge for advisors now, is how best to grow their business," said Wayne Withrow, Executive Vice President and SEI Advisor Network Business Unit Leader. "As investor sentiment improves and they look for new investment solutions, advisors need to find ways to attract these individuals. It's critical that advisors have a deliberate strategy for doing this in order to grow their business."

"Across the board, investors are looking for greater clarity about their investments and a deeper understanding of their options. As advisors, that means we have to improve our communication with clients – both in frequency and quality," said Michael Ferman, CPA, Head of Rubin Brown Advisors of St. Louis, Missouri. "The differentiator among advisors will be those who are able to meet this need of increased client communication, without sacrificing other areas of their business."

The survey addressed four key areas heading into 2011: Economic Outlook, Business Outlook, Advisor-Client Relationship, and Top Priorities.

Economic Outlook

From an economic perspective, advisors are more optimistic about 2011 than they were about 2010. More than half of advisors surveyed (60 percent) expect a stock market gain of greater than 7 percent. Market pessimism appears limited to the bond markets as nearly two-thirds (64 percent) of advisors think there is at least a 50 percent probability of a "bond bubble burst." The area of concern for advisors is the Federal deficit. Advisors are mixed on how best to solve the deficit challenge: reduce current stimulus plans (31 percent), revisit healthcare reform (28 percent), or increase the retirement age (16 percent). (Every Friday, SEI's Investment Management Unit publishes market commentary for all audiences, which can be found in SEI's Knowledge Center at

Business Outlook

Advisors are optimistic that 2011 will be a better year for their business than 2010. The toughest part for 2010 was dealing with the below-expected revenue levels. However, advisors identified positives as well: the market uncertainty provided an opportunity to strengthen relationships, show their real value, and examine existing business processes and procedures. Top goals for advisors to increase revenues for 2011 are to proactively acquire clients using new initiatives (32 percent), increase efforts with centers of influence (25 percent), and continue their existing referral process (21 percent). More than half (55 percent) of advisors said the most important aspect to growing their business is getting referrals from existing clients. An additional measure of optimism was found in that a majority of advisors (73 percent) said they would recommend young professionals consider a career as a financial advisor. Despite the overall optimism, more than half (57 percent) of advisors said that managing business risk right now takes more time than it did during the financial collapse in 2008.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs