Advisor Top-of-Mind Index Survey Q Report

Transcription

1 Advisor Top-of-Mind Index Survey Q Report Tap into the real-time perspectives of 1,000 financial advisors. Our quarterly "ATOMIX" survey explores the importance of four key issues income, volatility, taxes and growth and tracks trends over time.

2 Q ATOMIX Results NOVEMBER Market keeps defying skeptics Stocks continued their low-volatility march higher, led by growth sectors such as technology, despite persistent investor fears over historically elevated valuations and the prospect of resurgent volatility. This resilient market has been able to quickly shake off any bad news, with bulls emboldened by promised tax reform, still-low rates, strengthening earnings, technological innovation and slow-butsteady global economic growth. Still, advisors remain skeptical of the market, as evidenced by rising concerns across the board. Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Baseline= Volatility Income Growth 82.6 Taxes Page 2 of 8

3 Q ATOMIX Results: Volatility KEY POINTS Advisors describe investor sentiment as wary, but optimistic Managing volatility ranked first (118.9) on the Q4 ATOMIX, an 8% increase from Q3 46% of advisors say protecting wealth from market volatility increased in importance over the past 12 months 69% of advisors expect volatility in the U.S. equity markets to increase over the next six months 39% Optimistic 9% Pessimistic 42% Wary 14% Fearful 28% Confident 36% Anxious 15% Grateful 17% Excited 62% believe geopolitical issues and/or conflicts will be the biggest source of market volatility over the next six months 64% expect U.S. market volatility to increase over the next six months, while 32% believe it will stabilize Advisors believe fear remains a primary motivator behind clients' investment decisions Are your clients motivated more by fear or greed? FEAR 80% 81% 82% 76% 60% 55% 53% 52% Q Q Q Q Q Q Q Q GREED 20% 19% 18% 24% 60% 45% 47% 48% Page 3 of 8

4 Q ATOMIX Results: Income KEY POINTS Generating income ranked second (117.9) on the Q4 ATOMIX, a 10% increase from Q3 46% of advisors say generating income increased in importance over the past 12 months Advisors (85%) anticipate two or more interest-rate hikes in 2018 Advisors are most likely to use multistrategy bonds, floatingrate loans and high-yield bonds in a rising rate environment Advisors favor the US for near-term income generation, non-us for long term NEAR TERM 52% 45% 46% 42% 44% 7% U.S. International (non-u.s.) Emerging markets Frontier markets Developed markets None 3% LONG TERM 48% 55% 54% 58% 56% MARKET OUTLOOK: BONDS Advisors have a neutral or bearish outlook 19% Bullish 18% 57% Neutral 55% 24% Bearish 27% THIS QUARTER NEXT QUARTER Page 4 of 8

5 Q ATOMIX Results: Growth KEY POINTS Growing wealth ranked third (108.1) on the Q4 ATOMIX, a 10% increase from Q3 36% of advisors say growth through capital appreciation increased in importance over the past 12 months MARKET OUTLOOK: EQUITIES Advisors tend to be bullish near term on equities 59% Bullish 41% 74% of advisors believe the market is fairly valued 33% Neutral 43% 8% Bearish 16% THIS QUARTER NEXT QUARTER Advisors believe emerging-market and international equities are more poised for growth How do you view global equity markets over the next 6-12 months? Emerging-Market Equities 75% 17% 8% International Equities 60% 22% 18% U.S. Equity Markets 41% 37% 22% Growing Stabilizing Declining Page 5 of 8

6 Q ATOMIX Results: Taxes KEY POINTS Reducing taxes ranked fourth (82.6) on the Q4 ATOMIX, a 13% increase from Q3 FOCUS ON CHARITABLE GIVING 93% of advisors discuss charitable giving with their clients These conversations focus on: 28% of advisors report tax concerns increased in importance over the past 12 months 90% of advisors are helping some or all of their clients reposition portfolios based on proposed tax reform Advisors top three tax challenges are concentrated stock positions, tax-inefficient mutual funds and assets producing high taxable income 40% Products 63% Tax implications 69% Fit within overall portfolio 8% Do not discuss FOCUS ON POLITICS 90% of advisors closely follow politics as a business practice 68% make recommendations to clients with politics in mind Of those, the majority (55%) believe domestic policy actions have the most influence on investment recommendations Page 6 of 8

7 Q ATOMIX Results: Responsible Investing KEY POINT 61% of advisors believe responsible investing mutual funds perform the same or better than traditional mutual funds 84% of advisors report their clients are interested in responsible investing 63% believe investors can achieve diversification with responsible investing Investors are most interested in clean energy (53%), sustainability (45%) and climate change (41%) 72% of advisors believe responsible investing mutual funds pose the same or less risk as traditional mutual funds Only 21% of advisors feel that they are well-informed about ESG and responsible investing strategies About the same Millennial advisors are more optimistic about the of responsible investing mutual funds How would you compare the of responsible investing mutual funds to traditional mutual funds? Better 35% 43% Lower 22% MILLENNIAL ADVISORS ALL OTHER ADVISORS 21% Better 35% 44% About the same Lower Advisors believe politics and values drive most clients to turn to responsible investing What are your clients top reasons for expressing interest in and/or turning to responsible investing? MILLENNIAL ADVISORS 30% 21% 20% Trump administration's policies I want to align my investments with my values Better return potential ALL OTHER ADVISORS 12% 40% 12% 12% 12% 6% Geopolitical issues Potential for lower risk My clients are not interested in responsible investing 11% 6% 18% Page 7 of 8

8 Q ATOMIX Results: About Eaton Vance and ATOMIX About Eaton Vance Eaton Vance (NYSE: EV) is a leading global asset manager whose history dates to With offices in North America, Europe, Asia and Australia, Eaton Vance and its affiliates managed $419.3 billion in assets as of September 30, 2017, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company s long record of providing exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today s most discerning investors. For more information about Eaton Vance, visit eatonvance.com. About Calvert Research and Managaement Calvert Research and Management is a leader in Responsible Investing. The company traces its roots to Calvert Investments, which was founded in 1976 and was the first to launch a socially responsible mutual fund that avoided investment in companies that did business in apartheid-era South Africa. Today, the Calvert Funds are one of the largest and most diversified families of responsibly invested mutual funds, encompassing actively and passively managed strategies, U.S. and international equity strategies, fixed-income strategies, and asset allocation funds. Calvert Research and Management is a wholly owned subsidiary of Eaton Vance. For more information, visit calvert.com. This material is for informational and illustrative purposes only. It does not constitute investment advice, a recommendation to buy or sell any particular securities or to adopt any particular investment strategy. Investing involves risk and you may incur a profit or a loss. The views expressed are those of the author and survey participants, only current through the date stated on the cover of this report. These views are subject to change at any time based upon market or other conditions, and Eaton Vance disclaims any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for Eaton Vance are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance fund. This report may contain statements that are not historical facts, referred to as forward-looking statements. Future results may differ significantly from those stated in forward-looking statements, depending on factors such as changes in securities or financial markets or general economic conditions. Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a mutual fund. This and other important information is contained in the prospectus and summary prospectus, which can be obtained from a financial advisor. Prospective investors should read the prospectus carefully before investing. ATOMIX Methodology The Advisor Top-of-Mind Index (Q4) was calculated based on the findings of a survey of 1,000 financial advisors from a diverse group of companies. Eaton Vance contracted with a third party to conduct the online survey from September 25, 2017 October 20, The Advisor Top-of-Mind Index uses a similar methodology as the U.S. Consumer Confidence Index* (which has no affiliation with Eaton Vance) in that it calculates a weighted average of current perceptions (40% of the Index) and what advisors think about the trends (60% of the Index). The Index set a baseline average of 100 for April Each component measured is tracked quarterly to illustrate changes in advisor perceptions and changes in trends over time. Future surveys will sample different financial advisors and may produce different results. *The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The Consumer Confidence Index was started in 1967 and is benchmarked to 1985=100. The Index is calculated each month on the basis of a household survey of consumers opinions on current conditions and future expectations of the economy. Opinions on current conditions make up 40% of the Index, with expectations of future conditions comprising the remaining 60%. Our investment affiliates 2017 Eaton Vance Distributors, Inc. Member FINRA/SIPC Two International Place, Boston, MA eatonvance.com Page 8 of 8 Not FDIC Insured Not Bank Guaranteed May Lose Value Investment Professional Use Only