Advisors Surveyed by Hartford Funds Say Politics Cause Sleepless Nights for Investors
June 19 2017 - 8:30AM
Business Wire
Despite political concerns, clients still have
appetite for further investments
New data released today by Hartford Funds reveals that advisors
believe anxiety negatively impacted investor decision making over
the last 12 months. The survey of more than 200 advisors also shows
that despite political uncertainty both domestically and globally,
advisors’ clients still have appetite to invest new dollars.
“Investors and advisors witnessed significant geopolitical
events in the last year, all of which can impact decision-making,”
said John Diehl, senior vice president of Strategic Markets for
Hartford Funds. “Our survey clearly demonstrates that helping
clients better understand their risk tolerance and how anxiety can
lead to poor investment decisions is more important now than ever
before.”
ANXIETY IMPACTS INVESTOR DECISION MAKING, POLITICS TOP OF
MIND
Most advisors (62 percent) agree client anxiety led to poor
investment decisions last year. Measuring current concerns,
politics top the list of reasons advisors believe are currently
keeping clients awake at night. Domestic politics are causing more
sleepless nights for clients (37 percent) than international
politics (14 percent), according to advisors. Meanwhile, advisors
were more likely to say they are sleeping soundly (31 percent) than
being kept awake by domestic (20 percent) or international politics
(21 percent).
“Advisors typically see less reason for concern in times of
political disruption because they are able to tune out the noise;
they understand that there’s less of a connection between politics
and market cycles,” continued Diehl. “Sharing data to this effect
and discussing your clients’ risk tolerance can help ease their
minds, as well.”
Comparing confidence levels in international and domestic stock
markets, advisors preference is evenly split at 39 percent.
Meanwhile, 22 percent are equally confident in both markets or
undecided. With a shifting domestic and international political
landscape, financial advisors are not putting all of their eggs in
either basket.
CLIENTS READY TO INVEST MORE, BUT ADVISORS CAUTIOUSLY
OPTIMISTIC
Despite political concerns, advisors said that most clients (80
percent) want to take advantage of the current environment by
investing more dollars. However, half of advisors recommend clients
maintain risk levels and one-third recommend lowering portfolio
risk. Conversely, 17 percent are advising clients to take on more
risk, consistent with 68 percent of investors who have appetite to
invest new dollars at this point in time.
The survey of 218 financial advisors was administered in-person
in April 2017.
About Hartford Funds
Founded in 1996, Hartford Funds is a leading asset manager,
which provides mutual funds, ETFs, and 529 college savings plans.
Using its human-centric investing approach, Hartford Funds creates
strategies and tools designed to address the needs and wants of
investors. Leveraging partnerships with leading experts, Hartford
Funds delivers insight into the latest demographic trends and
investor behavior.
The firm’s line-up includes more than 60 mutual funds in a
variety of styles and asset classes, and 9 ETFs. Its mutual funds
(with the exception of certain fund of funds) are sub-advised by
Wellington Management or Schroder Investment Management North
America Inc. The 7 strategic beta ETFs offered by Hartford Funds
are designed to help address investors’ evolving needs by
leveraging a unique risk-optimized approach, which identifies risks
within each asset class and then deliberately and systematically
re-allocates capital toward risks more likely to enhance return
potential. Hartford Funds has mutual fund assets under management
of $87.1 billion as of March 31, 2017 (excluding assets used in
certain annuity products). For more information about our
investment family, visit www.hartfordfunds.com.
All investments are subject to risk, including the possible loss
of principal. There is no guarantee the funds will achieve their
stated objectives.
Investors should carefully consider a fund’s investment
objectives, risks, charges and expenses. This and other important
information is contained in the fund’s prospectus and summary
prospectus (if available), which can be obtained by visiting
hartfordfunds.com. Please read it carefully before
investing.
Hartford Funds refers to Hartford Funds Management Group, Inc.,
and its subsidiaries, including the mutual funds’ and active ETFs’
investment manager, Hartford Funds Management Company, LLC (“HFMC”)
and the mutual funds’ distributor, Hartford Funds Distributors,
LLC, as well as Lattice Strategies LLC (“Lattice”), a wholly owned
subsidiary of HFMC effective July 29, 2016. Lattice is the
investment adviser to the strategic beta ETFs. All ETFs are
distributed by ALPS Distributors, Inc., which is not affiliated
with Lattice or Hartford Funds. “The Hartford” is The Hartford
Financial Services Group Inc. and its subsidiaries. Hartford Funds
Distributors, LLC is a subsidiary of The Hartford Financial
Services Group Inc.
HIG-W
Some of the statements in this release may be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. We caution investors that these
forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Investors
should consider the important risks and uncertainties that may
cause actual results to differ. These important risks and
uncertainties include those discussed in The Hartford’s Quarterly
Reports on Form 10-Q, our 2016 Annual Report on Form 10-K and the
other filings The Hartford makes with the Securities and Exchange
Commission. We assume no obligation to update this release, which
speaks as of the date issued.
From time to time, The Hartford may use its website to
disseminate material company information. Financial and other
important information regarding The Hartford is routinely
accessible through and posted on our website
at http://ir.thehartford.com. In addition, you may
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Alerts" section at http://ir.thehartford.com.
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Media:For Hartford FundsCindy Engman, 212-279-3115
x281cengman@prosek.com