Mapping Client Needs To Advisor Offerings, Russell Investments Says A+B+C+T

What are the primary concerns of investors today and what type of support are they looking for from financial advisors? These are critical questions for advisors, and the answers can guide how they promote their capabilities and guide client conversations. Fortunately, a survey that Russell Investments conducts every year provides valuable insights into these issues. After its latest survey, Russell identified four essential services that advisors should be promoting to meet investors where they are today. Russell put them together in an easy-to-remember formula: A+B+C+T.

1. Active rebalancing. The varying performance of different asset classes such as stocks and bonds can throw investors’ portfolio allocations considerably out of whack over time. An investor with a 60/40 portfolio could find themselves with an 85/15 allocation after just a few years of rallying equity markets and flat or down bond markets. Many investors don’t recognize the importance of rebalancing regularly or the considerable risk posed to their portfolios if they don’t. Advisors have a great opportunity to promote the value of professional advice by explaining what rebalancing is and how they implement it. At a time when investors are increasingly concerned about risk, advisors can let clients know that rebalancing is one of the best risk management tools available to them.