RIAs This Summer are Focused on Strategic
Planning, Though Confidence in the U.S. Economy and the Financial
Markets Has Waned Since January
Registered investment advisor (RIA) optimism in the U.S.
economy, which reached new highs at the start of 2017, has slipped
in recent months, according to the TD Ameritrade Institutional1
Mid-Year RIA Sentiment Survey.
Sixty percent of RIAs are optimistic about the U.S. economy
compared to 68 percent in January, while 56 percent doubt the stock
market's momentum will continue through the year-end. For most of
the year, the stock market has chugged along hitting all-time highs
with low volatility.
Sentiment brightens as RIAs look beyond U.S. borders: 64 percent
are optimistic about the global economy, compared with at 55
percent at the top of the year.
Government policies are front and center. Nearly half of
respondents say a proposed tax plan from President Trump would have
the greatest impact on their firms; on the other hand, just 23
percent believe the new DOL Conflict of Interest Rule will have a
positive impact their business, compared with 62 percent who
believe it will not impact them at all.
Turns out, advisors are staying focused on the things they can
control: strategic planning and delivering a superior experience to
clients.
"Summer may conjure up images of beaches and barbecues, but for
independent advisors, it’s business-as-usual," said Tom Nally,
president of TD Ameritrade Institutional, provider of brokerage and
custody services to more than 5,000 independent RIA firms. "RIAs
are using this time of year to stay connected to clients, improve
their business and onboard young talent."
Paying No Mind to Sweet Summertime
Contrary to the lazy, hazy image of summer, RIAs maintain a
brisk pace with the change of seasons, using the time between
Memorial Day and Labor Day to handle operational and planning
matters that take typically take a backseat. Nearly four in 10 RIAs
say they tackle most of their strategic planning work at this time
of year, and 36 percent spend more time on technology issues.
Roughly 30 percent devote more energy to staff training and
development.
RIAs also pride themselves on being accessible to clients.
Three-fourths say they maintain the same level of contact or higher
with clients in the summer. Though nearly half of RIAs say they
take between one to two weeks of vacation time, 67 percent check in
with the office at least once a day while out, and 16 percent say
they are always working, even if not physically present in the
office.
Few RIAs Offer Internships
The survey revealed that RIAs could do more during summer months
to cultivate young talent. For example, just one-third hire interns
and of these, only 28 percent have a formal internship program in
place.
Those who use interns are putting them to good use -- most of
the time. The top three jobs for interns involve handling projects
that other associates don’t necessarily have time to handle,
investment research and assistance with marketing and business
development.
Most RIAs do not include interns when it comes to client
interaction. Just 43 percent of RIAs bring their interns into
client or prospect meetings.
"If independent RIAs want to attract the next generation of
talent, they may want to expose aspiring young professionals to all
aspects of the business," said Nally. "Older clients can see that
their investment advisor is developing a deep bench of talent,
bringing others along who may one day manage their family’s wealth,
while younger clients will see someone of their own
generation."
When it comes to finding interns, 75 percent of RIAs rely on
either their local colleges or word of mouth referrals for
candidates. More than half say they create internships for the
children of friends and clients.
About the SurveyThe results of TD Ameritrade
Institutional 2017 Mid-Year RIA Sentiment Survey are based on a
phone survey conducted from June 13 through June 26, 2017 by
MaritzCX on behalf of TD Ameritrade Institutional, a division of TD
Ameritrade Inc., of 300 registered investment advisors (“RIAs”)
managing an average of $166 million in assets. Survey participants
were asked to share their views on economy, the outlook for their
firms and the RIA market overall. Participants may be clients of TD
Ameritrade Institutional and other custodians. The margin of error
in this survey is ±5.6%.
MaritzCX and TD Ameritrade, Inc. are separate, unaffiliated
companies and are not responsible for each other's products and
services.
About TD Ameritrade InstitutionalTD Ameritrade
Institutional is a leading provider of comprehensive brokerage and
custody services to more than 5,000 fee-based, independent
registered investment advisors and their clients. Our advanced
technology platform, coupled with personal support from our
dedicated service teams, allows investment advisors to run their
practices more efficiently and effectively while optimizing time
with clients. TD Ameritrade Institutional is a division of TD
Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding
Corporation.
About TD Ameritrade Holding CorporationMillions of
investors and independent registered investment advisors turn to TD
Ameritrade’s (NASDAQ: AMTD) technology, people and education
resources to help make investing and trading easier. Online or over
the phone. In a branch or with an independent RIA. First-timer or
sophisticated trader. Our clients want to take control, and we help
them decide how - bringing Wall Street to Main Street for more than
40 years. TD Ameritrade has time and again been recognized as a
leader in investment services. Visit TD Ameritrade's newsroom or
amtd.com for more information.
Brokerage services provided by TD Ameritrade, Inc., member FINRA
/ SIPC
1 TD Ameritrade Institutional is a division of TD Ameritrade,
Inc., a brokerage subsidiary of TD Ameritrade Holding
Corporation
Source: TD Ameritrade Holding Corporation
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version on businesswire.com: http://www.businesswire.com/news/home/20170801005556/en/
TD AmeritradeJoseph A. Giannone, 201-369-8705Communications +
Public AffairsJoseph.Giannone@tdameritrade.com
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