The Investment Pulse

Managing Risk Is Greatest Concern of Financial Advisors

Volatility, fear of correction, fuel search for growth

July 31, 2014 – 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.

A growth in equities

“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 the investment pulse. 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.
...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

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.

The 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