Trump-related uncertainty sparks strategic portfolio shifts
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. Specifically, 35% of high-net-worth advisers dedicate four or more hours per client to strategy reviews over the last six months.
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 emphasise the need for rapid, informed decision-making, highlighting the importance of “speed in execution and trading” and “timely data” in navigating today’s rapidly evolving 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."