Advisors and clients often have different points of view when it comes to portfolio performance, according to a new quarter survey by Russell Investments.
More than half of advisors
surveyed (53 percent) said they measure portfolio performance on how well progress matches the client’s investment goals
, yet just 29 percent believed their clients held the same view, the survey said.
Clients were more likely to measure performance based on short-term factors, according to the survey. Such factors include one-year returns (54 percent), absolute return (49 percent) and volatility
(41 percent), the survey said.
In addition, the views of clients and advisors vary when it comes to the markets. Seventy-eight percent of advisors said they were highly optimistic about the capital markets over the next three years, but only 18 percent believed their clients shared their optimism, according to Russell Investments.