Most financial advisers are preparing to add more financial planning services to their practices as a result of the recent recession, according to a report on practice management by Cerulli Associates

In addition, advisers are looking into adding alternative investments to client portfolios as a way to help them recover lost ground.

A majority of those advisers surveyed, or 57%, said they will add more financial planning services to their practices. They are broadening the focus of their practices beyond investment performance.

However, investment performance is still vital. Most advisers, 51%, said they would adopt more conservative portfolio allocations, and 43% of advisers said they are turning to alternative investments as a result of the recent market downturn. Some products under consideration are hedge funds, venture capital funds and managed futures, Bing Waldert, a director at Boston-based Cerulli Associates, said. “Advisers are using them as a way to diversify portfolios,” he said.

Although alternative investments haven’t all lived up to their marketing, they have beaten broader equity benchmarks, the study found. There has been a lot of discussion among advisers about how to use them in their own practices, Waldert said. “Broker/dealers should be thinking about this,” as a way to educate and serve advisers, he said.

The Cerulli report surveyed 1,900 advisers from February 2009 through September.

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