Summarize this article Rethinking Investment Strategies By Carly Schulaka conomic times are changing, and financial professionals are

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Rethinking Investment Strategies By Carly Schulaka conomic times are changing, and financial professionals are changing with them. Advisers are rethinking asset allocation, withdrawal strategies and even their core investing philosophies, according to the findings of the Financial Planning Association Research Center's 2009 Trends in Investing study, which surveyed nearly 400 FPA members in February 2009. E Taking a fresh look at asset allocation, advisers are reevaluating the merits of vari- ous investment products. Tax efficiency, guarantees, liquidity and diversity are the objectives behind more advisers looking to increase their use of exchange-traded funds, fixed annuities, permanent life insurance products, alternative invest- ments and cash and equivalents. FPA conducted a similar survey of invest- ment product usage and asset allocation in early 2008, months before the stock market plunge last fall. Comparing some findings from the two surveys illustrates how the market environment is changing the way advisers are investing. the Melissa Nassar, a principal with Vanguard's Financial Advisor Services, says current market conditions will continue to change way advisers invest in the future. "I suspect that client demand and the client experience will change," says Nassar. "Clients will work with advisers, and advis ers will work with clients, to create an asset allocation program that is far more centered on risk tolerance. The last decade was really about seeking out the best return. I think we are now returning to sta- bility and simplicity. "This is a ball market for advice, and advis ers are more focused on risk-adjusted returns Returns at any cost are no longer valued." Rebecca King, research business devel- opment analyst for the FPA Research Center, says the results from this year's study show a more dramatic change in investment strategy than in previous years. "In the past we've seen gradual shifts in asset allocation as advisers refine their prod- uct recommendations to achieve the best overall gain for their client based on their client's unique situation," says King. "Given the market, it comes as no surprise that advisers are actively rethinking their strat- egy and are more frequently using vehicles that guarantee funds for their client or offer perks that go beyond pure investment return, such as tax efficiency or liquidity." ETFs Continue to Gain Ground Seventy-two percent of advisers who partici- pated in the 2009 Trends in Investing study indicate they recommend and use ETFs, a 63 percent increase from the 2008 study. Among advisers currently using ETFs, nearly 54 percent say they plan to increase their use over the next 12 months-the most significant anticipated increase among the 15 investment products advisers were asked about. Forty-one percent expect their usage of ETFs will stay the same, and 5 per- cent expect to decrease their use of ETFs. PLEASE TURN TO PAGE 6 Rethinking Investment Strategies By Carly Schulaka conomic times are changing, and financial professionals are changing with them. Advisers are rethinking asset allocation, withdrawal strategies and even their core investing philosophies, according to the findings of the Financial Planning Association Research Center's 2009 Trends in Investing study, which surveyed nearly 400 FPA members in February 2009. E Taking a fresh look at asset allocation, advisers are reevaluating the merits of vari- ous investment products. Tax efficiency, guarantees, liquidity and diversity are the objectives behind more advisers looking to increase their use of exchange-traded funds, fixed annuities, permanent life insurance products, alternative invest- ments and cash and equivalents. FPA conducted a similar survey of invest- ment product usage and asset allocation in early 2008, months before the stock market plunge last fall. Comparing some findings from the two surveys illustrates how the market environment is changing the way advisers are investing. the Melissa Nassar, a principal with Vanguard's Financial Advisor Services, says current market conditions will continue to change way advisers invest in the future. "I suspect that client demand and the client experience will change," says Nassar. "Clients will work with advisers, and advis ers will work with clients, to create an asset allocation program that is far more centered on risk tolerance. The last decade was really about seeking out the best return. I think we are now returning to sta- bility and simplicity. "This is a ball market for advice, and advis ers are more focused on risk-adjusted returns Returns at any cost are no longer valued." Rebecca King, research business devel- opment analyst for the FPA Research Center, says the results from this year's study show a more dramatic change in investment strategy than in previous years. "In the past we've seen gradual shifts in asset allocation as advisers refine their prod- uct recommendations to achieve the best overall gain for their client based on their client's unique situation," says King. "Given the market, it comes as no surprise that advisers are actively rethinking their strat- egy and are more frequently using vehicles that guarantee funds for their client or offer perks that go beyond pure investment return, such as tax efficiency or liquidity." ETFs Continue to Gain Ground Seventy-two percent of advisers who partici- pated in the 2009 Trends in Investing study indicate they recommend and use ETFs, a 63 percent increase from the 2008 study. Among advisers currently using ETFs, nearly 54 percent say they plan to increase their use over the next 12 months-the most significant anticipated increase among the 15 investment products advisers were asked about. Forty-one percent expect their usage of ETFs will stay the same, and 5 per- cent expect to decrease their use of ETFs. PLEASE TURN TO PAGE 6

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The article discusses the shifting trends in investment strategies among financial professionals particularly in response to changing economic conditions The Financial Planning Association Research Ce... View the full answer