Fidelity Investments: Portfolio Management Is Advisors’ Top Priority – Investopedia (blog)

With market volatility out of the control of financial advisors, many are shifting their focus to portfolio management as their number one priority, Fidelity Investments found in a new survey.

Based on the firm’s latest quarterly Fidelity Advisor Investment Pulse survey, which polls Fidelity Institutional Asset Management advisor clients in the broker-dealer and registered investment advisor communities about their concerns and sentiments around investing, portfolio management ranked number one in terms of priorities. In the last quarterly survey, it ranked number two. Concerns about volatility in investing and the equity markets were tied for second place, while concerns about the government and economy fell to fourth place. Those issues have been topping the list of priorities for the past four quarters in a row, Fidelity Investments said.

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“As advisors continue their focus on protecting clients from a possible market correction and downside risk, they should consider long-term and diversified strategies for portfolio construction,” Bob Litle, head of intermediary sales at Fidelity Institutional Asset Management said in a press release highlighting the results of the quarterly survey. “Given the challenges and complexity of today’s environment, advisors who have a consistent approach in making investment decisions with their clients have the potential to create efficiencies in their practices and help investors reach their goals.”

According to the Boston-based firm, the number of investment options has skyrocketed during the past few decades, making portfolio management more difficult for advisors. Those advisors who have an effective strategy in place when it comes to managing portfolios can stand out from the pack. “We’ve observed that successful advisors focus on their framework for evaluating strategies and matching them to clients’ objectives as much as they focus on the products,” Litle said in the release. He noted that a well-constructed approach to building an investment portfolio could help increase advisors’ confidence in choosing and combining investments. 

What’s more, he said that advisors can enhance their portfolio construction by using a framework that looks at how various investment combinations will work together. The executive also suggested that advisors look at a mix of active and passive investments to help balance risk tolerance and the potential for outperformance. “A portfolio construction approach that focuses on a client’s overall portfolio can help advisors examine the underlying exposures of all investments – and pursue opportunities to create that ‘championship’ team,” noted Litle.

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