Despite concerns about market performance, regulation, and competition from robo-advisors, Canadian financial advisors are still expecting double-digit growth in their businesses in the coming year, according to new research from Natixis Global Asset Management (NGAM).

The Boston-based firm, which also owns Toronto’s NGAM Canada LP (formerly known as NexGen Financial), reports that a survey of 150 Canadian advisors carried out earlier this year finds that 64% see market performance and volatility as the primary obstacle to growing their businesses, followed by changing interest rates, regulation and pressure on fees — all of which are tied for second place.

In addition, almost half of the advisors surveyed (47%) say that robo-advisors represent a threat to their business; in fact, a similar percentage expect the rise of robo-advisors to impact the advice business permanently.

Indeed, the survey found that 74% of advisors believe that the emergence of robo-advisors will force traditional advisors to improve their services to stay competitive. Meanwhile, just more than half of those surveyed said that they could use a robo-advisor component in their business to compete better and cater to less affluent clients.

“Advisors recognize the disruptive potential of automated advice,” says Ed Farrington, executive vice president, business development and retirement with NGAM, in a statement. “They have their own competitive advantages, too, especially their ability to offer one-on-one attention and advice. They are more than prepared for the challenge.”

In fact, the survey notes that 78% of advisors expect many investors to abandon robo-advisors in volatile markets because they won’t receive enough individualized service.

Despite the various challenges that advisors are facing, they are also remarkably optimistic about their own prospects for the coming year. According to the survey, advisors are expecting, on average, a 15% increase in assets under management (AUM) in the coming year.

New clients are the most frequently cited source of AUM growth, followed by garnering a greater share of AUM from existing clients. Market performance is also seen as a possible contributor.

The survey found that 71% of advisors believe the transfer of wealth to younger generations represents their greatest growth opportunity. The survey also found that advisors are particularly looking at the so-called “millennial” generation (35 and younger) as a valuable source of new clients.

Specifically, 64% of advisors surveyed say that millennials are important to their business growth and 76% agree that firms with younger clients will grow more quickly than those with older ones. Currently, millennials comprise 11% of advisors’ clientele, Natixis says, but that is expected to grow to 16% within three years.

At the same time, the survey suggests that advisors are worried about meeting the needs of older clients adequately in a low-return environment. The survey found that advisors’ top concerns in this area include: producing enough income to pay for clients’ lifestyle goals beyond basic needs (51%); providing stable income (43%); and growing assets while containing risk (43%).

“As they look to expand, advisors are mindful of the needs of clients who are retired, or who are nearing retirement age,” Farrington says. “Yet, advisors feel a great deal of pressure to build portfolios that can deliver sufficient income for retirees.”

This tension is reflected in the difference between the return expectations of advisors and clients. Natixis reports that advisors say clients can expect long-term investment gains of 6.5% a year, realistically, after inflation whereas, in a separate survey earlier this year, individual investors around the world said they have to earn 9.3% annually to meet their financial needs.

NGAM conducted an online survey of 150 Canadian advisors in June. The survey is part of a larger global study of 2,400 advisors in 14 countries.