Loyalty: during a pandemic, rebalance advisers, watch active investments

Loyalty: during a pandemic, rebalance advisers, watch active investments
Loyalty: during a pandemic, rebalance advisers, watch active investments

In the first half of April, 41% of financial advisers sought to increase clients' active investment allocations. 57% planned to increase exposure to US stocks. And when advisors made changes to client portfolios, the # 1 reason was to rebalance.

These are some of the findings from a survey of 468 advisers for Fidelity Investments from April 8 to 13. Although the S&P 500 was well below its coronavirus-induced lows during this period, the markets were still uneven and investors remained concerned about the impact of the pandemic.

Investigation shows advisers were looking for solid strategies that don't just mean going into the safest asset classes, writes InvestmentNews. Thirty percent of advisers were actually planning to reduce liquidity exposure, which is seen as a refuge in volatile markets.

Among other findings: 26% of advisers planned to increase exposure to quality fixed income securities, while 31% of advisers planned to reduce exposure to equities in international and emerging markets.

Investing in high-quality US stocks and bonds is a more prudent strategy than carrying international stocks and junk bonds, Matt Goulet, executive vice president of portfolio solutions at Fidelity Institutional, told InvestmentNews. But it still shows that advisers are taking a proactive approach to managing client portfolios in the event of a major crisis.

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