Advisers are recalibrating client portfolios and communications strategies in response to global political volatility, according to the latest quarterly research conducted by Praemium in partnership with CoreData.
The research reveals that six in ten advisers cite U.S. President Trump related events as having a moderate to major effect on portfolio construction and client conversations, with 60% of advisers stating they have made changes to their investment strategy in response to recent market volatility. This uncertainty has also intensified client engagement, with 47% of advisers reporting increased communication volumes and a heightened need for reassurance.
While 73% of advisers remain “cautiously optimistic” about risk and long-term investing, those advisers servicing larger portfolios are spending more time reassessing investment strategies, with 35% of high-net-worth advisers dedicating four or more hours per client in the last six months to strategy reviews.
The data also highlights a growing need for agility. “Navigating volatile markets” was cited as the top challenge (36%) for advice businesses, followed closely by the burden of managing increased client communication (33%). Advisers describe the need for rapid, informed decision-making, noting “speed in execution and trading” and “timely data” as critical to navigating today’s increasingly fast-changing markets.
Commenting on the findings, Praemium Chief Strategy Officer Denis Orrock said: “As global dynamics shift, advisers are having to respond rapidly and spend more time educating and reassuring clients. In order to keep delivering this value for their clients, advisers have a growing need for platforms and tools that can support more frequent reviews, scenario modelling, and timely reporting in volatile markets.”
