Majority of Advisors Are Tweaking Portfolios During COVID-19Majority of Advisors Are Tweaking Portfolios During COVID-19
Advisors are putting sidelined money into equities, reallocating assets in line with models, and taking money out of the stock market, according to a recent live poll conducted by FlexShares.
A majority of advisors made changes to client portfolios in the past 10 days, with a quarter of them putting sidelined money into equities, 21% reallocating assets in line with their model portfolios, and 16% taking some money out of the stock market, according a recent live poll conducted by Northern Trust’s FlexShares. Nearly four in 10 advisors (38%) indicated that they made no changes to client portfolios.
About 200 advisors who tuned into a webinar hosted by FlexShares and ETF Trends last Friday participated in the live poll.
When asked how they manage for event risk, nearly a third (29%) indicated they don’t implement changes based on event risk. Twenty-one percent said they take a more defensive equity position, 20% tactically move to cash, 19% implement a low-volatility strategy, and 11% increase bond holdings.
Overall, advisors said they felt good about their current asset allocations, with 36% saying they were very confident, 40% somewhat confident, 23% neutral and just 1% not confident.
In addition to client portfolios, advisors have also changed how they’re communicating with clients, with 63% of them halting all in-person meetings and 74% of them relying on emails and phone calls more. Sixty-five percent of advisors are working from home, and just over a third (35%) are using video capabilities like Zoom or Google Hangouts to remain in touch with clients.
