Maybe it's the "taper tantrum," wild markets, dysfunctional government or riots overseas—whatever the reason, advisors are confident clients need, and are looking for, help.
A new report from Russell Investments released Thursday found the "overwhelming majority" of advisors optimistic about client acquisition in 2013: 87% reported feeling optimistic about acquiring new clients and households.
This follows similar numbers for 2012: 86% of advisors acquired more clients than they lost in 2012, with nearly half indicating they brought on more than 10 clients or households.
The quarterly Financial Professional Outlook survey focused on client acquisition, the use of referrals to drive business growth, and the implications of an aging client base.
Top acquisition strategies for 2013 include receiving client referrals reactively (76%), referral prospecting through current clients (54%) and professional networking (43%).
Fully 32% of advisors say they believe clients are optimistic about the capital markets over the next three years—the highest proportion since the March 2011 FPO survey. Three-quarters (75%) of advisors reported that they, too, are optimistic about the markets.
"Many advisors are finding it easier to acquire new clients than it was just six months ago, as investors' willingness to participate in the market is bolstered by strong recent performance," Kevin Bishopp, director of practice management for Russell's U.S. advisor-sold business, said in a statement. "Yet there is a finite universe of individual investors and a highly competitive environment for advisors. To differentiate themselves, advisors need to deliver a superior service and relationship experience, not just a product or portfolio."
