Press release
Majority of Financial Advisors Increased Clients and AUM in 2020 Despite Pandemic, Finds FlexShares Advisor Wellness Survey
CHICAGO--(BUSINESS WIRE)-- Northern Trust Asset Management’s FlexShares® Exchange Traded Funds today announced the results of its third financial advisor
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[{"type":"text","content":" CHICAGO--(BUSINESS WIRE)--\nNorthern Trust Asset Management’s FlexShares® Exchange Traded Funds today announced the results of its third financial advisor wellness survey, which found that advisors remained highly resilient during the pandemic and that the majority were able to grow their business in 2020. Furthermore, most financial advisors didn’t perceive the pandemic to be a threat to their business and are overwhelmingly satisfied with their career choice.\n\nThe survey of over 450 advisors found that the majority (62%) grew net assets under management amid the pandemic and 57% increased their number of clients served. Only 7% reported a decline in assets and 6% a decline in clients. The shift to remote work did not impede business growth for most, as advisors indicated that the impact of COVID-19 on managed assets was relatively neutral. And, they found several positive outcomes from pandemic-related changes, such as increased time with family (51%) and an opportunity to rethink their role or business model (46%).\n\nAdvisors’ overall stress level in 2020 (48.4%) was essentially on par with 2018 (48.2%), despite unique challenges. Their main source of stress was political uncertainty (48.3%), outweighing factors such as state of the markets (41%), the top source of stress in 2018. Beyond the political climate, advisors remain consistently stressed from building their business (44.3%) and compliance and regulatory matters (43.5%), which also ranked highly as sources of stress in 2018. These percentages were derived from a scale with “100%” being most stressful.\n\nAdvisors Highly Satisfied with Career Choice\n\nDespite the challenges that marked 2020 — including approximately seven in 10 advisors being uprooted from their normal work environment — overall career satisfaction and work-life balance were virtually unchanged and largely positive. Advisors reported occupational satisfaction of 78% in 2020, as compared to 76% in 2018. This may be due to the fact that advisor satisfaction is primarily driven by factors that were reinforced throughout the pandemic.\n\nWhen asked what they loved most about being a financial advisor, respondents overwhelmingly stated the ability to help and provide service to those who need it (58%), followed by independence and flexibility (19%) and the relationships that they form (13%). Moreover,...