However, the advisers surveyed understand that success in current markets will be as a result of smart portfolio management, rather than reliance upon new products.
 
The survey conducted by Wealthtrac over the past month found that almost 85 percent of advisers had made changes to their clients’ asset allocation in the past year.  And, while they were actively managing the portfolios, 80 percent believed they had sufficient access to products to adequately meet their clients’ needs.
 
“We all know that there is not going to be any short-term fix for today’s markets.  Therefore, we think this result shows is a maturity in the approach from advisers,” Mr Johnson said. 
 
“They are not just remaining passive and hoping markets improve.  Nor are they looking for exotic or high-risk products to generate returns.  Instead, they are looking for prudent strategies to preserve capital and achieve a reasonable level of return.”
 
The survey found the major focus of the changes had been for capital preservation (48%), an even split between income and growth focus (24%) and just five percent moving clients into cash.
 
Additionally, while capital preservation is key, most advisors are encouraging their clients to have some risk exposure. Around 70 percent said they are prepared to accept some level of risk to generate strong returns. Less than 30 percent said they are only willing to take on a very small amount of risk.
 
“We also think this appetite for risk is important.  Advisers cannot afford to leave their clients sitting in cash or they will never make up for the market losses of the past four years.”
 
Mr Johnson said it was important that advisers continued to work closely with their clients to give them the confidence to stay invested.  55 percent of advisers said their clients remained deeply scarred and bearish following the GFC.  40 percent said their clients understood market cycles are now willing to look for opportunities, but just four percent are actively seeking alpha and looking to make up for lost time.

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