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Managing Risk Is Greatest Concern of Financial Advisors, According To New Fidelity® Advisor Investment Pulse

July 30, 2014

As Many Advisors Brace for a Market Correction, Fidelity Financial Advisor Solutions Delivers Insights to Help Them Navigate

BOSTON--(BUSINESS WIRE)-- Fidelity Financial Advisor Solutions today announced the Q2 results of the Fidelity® Advisor Investment Pulse, a survey that captures the investment topics on the minds of more than 200 advisors in order to share common concerns and deliver resources to help them navigate changing market conditions.

The survey found that advisors were increasingly focused on market volatility in the second quarter of 2014 – it took the No. 1 spot in this survey vs. Q1 when it was No. 3, behind managing portfolios and fixed income. Many advisors surveyed cited the challenge of ensuring that their clients continue to benefit from the bull market, while also protecting them against the downside.

“Based on our Q2 survey results, we know that many advisors are thinking about a possible market correction, but at the same time they are looking for ways to find growth and generate income for their clients,” said Scott E. Couto, president, Fidelity Financial Advisor Solutions. “We believe that the differences between winners and losers among asset classes and individual securities are likely to increase, favoring active asset managers with the ability to conduct the research necessary to identify those opportunities offering the best chances for growth.

“Our investment and research teams see signs pointing to continued growth in equities, for example, in value stocks and certain segments of the economy, including the technology sector and the health care sector,” continued Couto. “We’ve seen many advisors take advantage of sector investing to diversify their clients’ portfolios, manage risk and help generate potential alpha.”

Fidelity offers a range of insights that can help advisors navigate this approach to investing. For access to the insights and resources that Fidelity offers, advisors can visit: advisor.fidelity.com/investmentpulse. They include:

  • Quarterly Sector Update: Q3 2014 --Fidelity equities experts provide advisors a snapshot of the relative performance potential of the 10 market sectors based on five key factors: relative strength, momentum, relative valuations, fundamentals and business cycle. The Q3 report identifies the technology, industrials and health care sectors as well-positioned for investment opportunities.
  • Where to Find Income in 2014 --Five top Fidelity investment managers discuss tech dividend stocks, floating rates, convertibles and traditional bonds. They share their insights into where investors looking to generate income from their portfolios might find opportunities.
  • A New Secular Bull Market? – Fidelity’s global macro strategist looks at two previous periods in history that are similar to today’s market: the 1950s and ‘60s and the 1980s and ‘90s. The common theme is that while each of those bull markets was unique, they shared a common theme: the market went up a lot more than it went down.

    Fidelity Financial Advisor Solutions has been tracking advisor sentiment about investing concerns and opportunities since April 2012. This proprietary research enables Fidelity to provide advisors with timely perspectives from their peers, and offer tools to take advantage of the investment opportunities that exist today.

    About the Fidelity Advisor Investment Pulse

    The Advisor Investment Pulse is an ongoing primary research effort that captures the views of more than 1,000 FFAS advisor clients annually. All FFAS advisor clients in the broker-dealer and registered investment advisor communities are asked to participate in the online survey. Respondents are asked an open-ended question: “Thinking about the investing environment and outlook, and the potential impact on your client portfolios, what investment challenge or opportunity would you say is top-of-mind for you right now?”

    The survey reports “Top of Mind” themes of most concern to financial advisors in both their practices and in the financial markets. These themes are distilled from individual financial advisor comments. The chart reflects the most current five themes that represent the most widely held views. Given the variability of the number of responses over time, and the ongoing nature of this effort, confidence levels also will be variable.

    About Fidelity Investments

    At Fidelity, our goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. We do this by focusing on a diverse set of customers: from 23 million people investing their own life savings, to 20,000 businesses needing help managing their employee benefit programs to 10,000 advisors and brokers needing technology solutions to invest their own clients’ money. Privately held and with 41,000 employees around the world, Fidelity is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products.

    As of June 30, 2014, the company held assets under administration of $4.9 trillion, including managed assets of $2.0 trillion. It is one of the largest mutual fund companies in the United States and the No. 1 provider of both workplace savings plans and Individual Retirement Accounts (IRAs). For more information about Fidelity Investments, visit www.fidelity.com.

    The content provided herein is general in nature and is for informational purposes only. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider. Fidelity Investments does not provide advice of any kind. You should conduct your own due diligence and analysis based on you and your firm’s specific needs.

    Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. In general the bond market is volatile, and fixed-income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed-income securities also carry inflation, credit and default risks for both issuers and counterparties.

    The registered trademarks and service marks appearing herein are the property of FMR LLC.

    Fidelity Institutional Wealth Services provides brokerage products and services and is a division of Fidelity Brokerage Services LLC. National Financial is a division of National Financial Services LLC through which clearing, custody and other brokerage services may be provided. Both members NYSE, SIPC.

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    Products and services provided through Fidelity Financial Advisor Solutions (FFAS) to investment professionals, plan sponsors and institutional investors by Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI 02917.

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    © 2014 FMR LLC. All rights reserved.




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