Economic uncertainty, generating positive investment returns for clients and increasing regulation are the biggest concerns for financial advisers, according to a poll conducted by Russell Investments.
Economic uncertainty was the biggest concern for half of the 44 advisers polled by the asset manager this month. A quarter regarded generating positive returns as their biggest worry, while one-sixth highlighted ‘increasing regulatory burdens'.
None of the advisers canvassed cited losing business to robo-advisers and digital tools as their top concern.
The poll also suggested almost three-quarters (70%) of financial advisers planned to increase their allocation to multi-asset over the course of 2017. Almost one in five (20%) planned to increase their allocation to passives while just 7% and 3% respectively planned to increase their allocation to equities and fixed income.
Russell Investments managing director and head of UK wealth management Nick French said: "Between Brexit, Trump and the coming French election, there has been a great deal of focus on geopolitical risks and their possible impacts on markets and investors, so advisers will naturally be concerned by the uncertainty ahead.
"During these uncertain times, advisers should focus on helping their clients understand how economic uncertainty can impact their portfolios and how best to navigate through these potential periods of volatility."
Russell Investments senior investment strategist Wouter Sturkenboom suggested the UK was past the peak of geopolitical risk, but said caution should still be exercised towards UK equities.
"Fixed income investors should take a balanced view on the transitory rise in inflation and the growth slowdown, not letting either side dominate their stance," he added.
Yesterday, against the backdrop of the triggering of Article 50, advisers told Professional Adviser concern surrounding Brexit had already prompted them to adopt a more global outlook with clients' investment portfolios.
The chairman isn’t answering his email
Reforms not enough
An economic cocktail
To encourage consumers to shop around
Will report to Pat Shea