Among other key findings in the Invesco study:
- Advisors continue to blend active and passive funds in a single portfolio Forty percent of financial advisors agree that now more than ever they are creating portfolios using a blend of active investment vehicles and passive ETFs. Less than a quarter of advisors use an exclusively all active management portfolio (24 percent) or an all ETF/passive management portfolio (19 percent).
- Risk management remains a priority Consistent with the 2011 survey, advisors cite managing risk as a predominant philosophy in managing client assets (40 percent). The survey showed wealth preservation as the most important issue for clients, followed by mitigating risk.
- Risk management investment strategies have not changed Advisors continue to mitigate risk in client portfolios by creating a blended asset allocation of active investments and passively managed ETFs (62 percent) and applying a more conservative asset allocation (56 percent).
- Alternatives, emerging market equities and large-cap funds drawing more attention Within actively managed mutual funds, advisors are most likely to increase capital over the next 12 months in alternatives (46 percent), emerging market equities (43 percent) and U.S. large-cap funds (40 percent).
About the Invesco RIA Market Research Study The RIA Market Research Study was conducted for Invesco Ltd. by Cogent Research in late August and early September 2012. The study is based on a survey of financial advisors around the United States with an average of $478 million in investable client assets. Cogent Research is not affiliated with nor employed by Invesco.
A white paper featuring additional, detailed findings from the study is available at http://www.invesco.com/auth/pdf/RIA-SURVEY-WP-3.pdf
To address concerns advisors have regarding risk management, Invesco Canada launched "Invesco Institute" seminars nationwide earlier this fall. These sessions provide advisors with risk education, risk-aware implementation ideas and programs to help them effectively speak to clients about risk topics. Advisors are asked to contact their Invesco Sales representative for more information about opportunities in their region.