Advisers Tell Clients To Keep Assets Put

Even in tough markets, advisers resist client urges to move assets, according to the most recent SEI Advisor Network Quick Poll.

A release from the wealth management platform provider said a survey of some of its most successful adviser clients revealed that when faced with client pressures, only 12% of advisers would move assets when pressured. Of that 12%, 4% would choose to adopt a more conservative asset allocation and 8% would move investments to cash/money market instruments.

The survey also found that more than 46% of advisers choose to work with clients to reevaluate goals and assess risk tolerance, while 31% meet with clients more frequently to address concerns.

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Throughout the industry, there have been competing views about how responsive advisers should be to client anxieties when it comes to adjusting their portfolios, which is somewhat aligned with poll results, SEI said. Although roughly 78% of advisers said their clients were generally accepting of their advice, almost 22% said clients had questioned, resisted, or even refused to heed advice, with some advisers expressing that clients have insisted advisers make changes.

“For the most part, we’re seeing advisers counsel clients to stay the course and not panic,’ said Stephen Onofrio, senior managing director, SEI Advisor Network, in the release. “People rely on their advisers’ advice and their trusted relationship for guidance. It’s natural for clients to be inquisitive and anxious to make some type of move during market downturns. Where advisers face real challenges, however, is in helping clients understand why they’re advising them to hold tight.”

The survey was completed by more than 250 independent financial advisers from around the country.

ProShares Launches Two Short ETFs in Energy, Financial Sectors

ProShares announced new funds that leverage desirable exposure to the oil and financial sectors.

As oil prices are near records and the sub-prime woes continue to shake up the financial sector, it is no secret that investors are seeking to benefit from the volatility in these markets, according to ProShares. The company said the trend is evident in the success of its two funds offering leveraged, short exposure to these sectors, which are among the firm’s most popular exchange-traded funds (ETFs). UltraShort Oil & Gas ProShares has attracted $2.3 billion in net flows year to date and UltraShort Financials ProShares has attracted $1 billion.

To capitalize further on these sectors, ProShares is introducing two new ETFs for investors who want short exposure: Short Oil & Gas ProShares and Short Financials ProShares. Both are designed to go up when stock indexes on the sectors go down (and down when the indexes go up), the company said.

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ProShares now offers 26 sector ETFs, including this lineup of six covering the energy and financial sectors. Using the Dow Jones U.S. Oil & Gas Index for oil and gas, ProShares offers: Short Oil & Gas (ticker: DDG); UltraShort Oil & Gas (ticker: DUG); and Ultra Oil & Gas (ticker: DIG). Using the Dow Jones U.S. Financials Index these funds are available: Short Financials (ticker: SEF); UltraShort Financials (ticker: SKF); and Ultra Financials (ticker: UYG)

A ProShares ETF prospectus is available at www.proshares.com or by calling 866.PRO.5125.

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