Advisors Mixed on Fed Rescue, Favor Increased Financial Industry Regulation

Business Wire, Oct 21, 2008

Disagree with Public on Obama and Economy

BERWYN, Pa. -- Brinker Capital, a leading investment management firm, today released results of the third quarter's Brinker Barometer, a gauge of financial advisor confidence and sentiment regarding the economy, retirement savings, investing and market performance.

"Our third quarter Barometer uncovered areas where advisors were in sync with the general public and areas where they fundamentally differ," noted John Coyne, President of Brinker Capital. "Financial advisors, like the American public, were split on the issue of the government rescue plan instituted for the financial markets, but they came out resoundingly against individual bailouts of Lehman Brothers and the auto industry. Contrary to recent polling of voters across the country, 76% of advisors believe that John McCain is better suited to resolve the financial crisis, with 24% supporting Barack Obama."

Advisors Split on Rescue Plan, Give "Two Thumbs Up" to Increased Regulation

Advisors marginally opposed the use of taxpayer dollars to rescue private enterprise in the U.S. Treasury's proposed $700 billion bailout package, with 49% favoring the plan and 51% opposed. While advisors are split on the taxpayer's role in the financial crisis, respondents overwhelmingly believe that the Federal government should play an increased regulatory role, with fully 78% of advisors supporting increased regulation of the financial industry, with 22% opposed.

Advisors "Just Say No" to Lehman and Auto Industry Bailouts

By far, the majority (90%) of respondents felt that the U.S. Treasury acted appropriately by refusing to provide Lehman Brothers with financial assistance to stave off bankruptcy, while a small group (10%) favored its rescue. In addition, 84% of respondents do not support financial support by the government for the flagging auto industry, with the remaining 16% favoring some stimulus.

Bush Tax Cuts May Need a Second Look

Respondents gave a frank assessment of the sustainability of the Bush tax cuts, which a small majority of advisors believed could not be continued given the Federal government's implementation of the rescue plan. With its $700 billion price tag, 53% of advisors say a continuation of the Bush tax cuts are no longer feasible, while 47% believe they remain viable.

Clients Approaching Advisors Seek Calm; Advisors Stay the Course

Given the market climate, when advisors were asked what clients were most concerned about, 65% indicated "insufficient stimulus to calm the markets," while 16% selected "potential tax rate increases." Nine percent each went to "a weak U.S. Dollar" and "inflation" as additional client concerns.

When advisors were asked if they are making any changes to client portfolios, the majority (61%) responded "no change - I am advising clients to weather the storm," while 28% of respondents noted they were "looking into alternative strategies to ensure diversified portfolios." Other responses included "I am shifting funds into less risky investments" (8%), and "I am aggressively pursuing equity markets" (3%).

For a copy of the full Q3 survey, please contact:

Jemile Dragovic, jdragovic@middlebergcommunications.com

About the Study

The Brinker Barometer was conducted online by Brinker Capital in September 2008. Results are based on responses from 380 advisors affiliated with insurance companies, independent broker-dealers and in sole practice. The study's copyright is held by Brinker Capital.

About Brinker Capital

Brinker Capital, Inc. is a leading independent investment management firm which provides managed account investment programs to individual and institutional investors through financial advisors. Brinker Capital was founded in 1987 by Charles Widger and is located in suburban Philadelphia. Visit Brinker Capital's website at www.brinkercapital.com.