Advisors agree almost unanimously that volatility will be a force to reckon with in the next two years, but 38% are not using managed volatility strategies in client portfolios, according to an SEI poll of 200 financial advisors.
And even though the majority of advisors believe managed volatility strategies will be helpful in 2012, 76% responded that they still feel the need to learn more about these strategies, according to SEI.
Many advisors recognize that “they don’t have the answer,” when it comes to volatility, said Kevin Crowe, head of product development for the SEI Advisor Network. “It’s during markets like these that clients turn to their advisors to guide them. … It is critical for advisors to identify resources to learn more about managed volatility strategies and incorporate them into clients’ portfolios.”
SEI has three managed volatility funds — U.S. Managed Volatility, Global Managed Volatility, and Tax-Managed Volatility. The funds avoid overconcentration in any one investment style or sector, and are part of SEI’s stability focused strategies, according to the firm.
Danielle Reed writes for Financial Planning.