How steady Aussie advisers caught the bounce

Financial advisers have proved their worth amid the volatility which has impacted the market over the past six months, according to new research conducted by investment manager, Fidante.

Not only has the research confirmed the reassuring steadiness of advisers through the challenging conditions, it has also pointed to their preparedness to guide their clients through a further unsettling period.

The Fidante Adviser Markets Survey sampled 174 financial adviser in April, therefore capturing the heightened volatility following US President, Donald Trump’s tariff announcements.

The survey’s core findings were that advisers were proved right in sticking with their instinct to hold steady through the tariff turmoil in the expectation that a market rebound would occur.

However, the survey also found that while advisers had sought to hold steady, the Trump regime rated as their top concern.

Encapsulating the other survey findings, Fidante said:

• Views were split on what is next: one in three (31%) expected the Australian and US share market to bounce back within six months, while 29% expected markets to fall further, and 26% expected it to stay about the same.
• In the inaugural survey in November 2024, advisers were most concerned about high equity valuations and inflation. In the latest edition, those fears had been overtaken, with one in two advisers (51%) ranking Trump’s economic policies and tariffs as their main top concern today.
• Advisers are increasingly looking to alternatives to drive returns looking to increase allocations to infrastructure (29%), private equity (22%), and private credit (21%).

Releasing the survey findings, Fidante Affiliates general manager, Evan Reedman said it had captured in real time how financial advisers had reacted to the sharp and unexpected shift in market sentiment.

“The markets reacted strongly to the US tariff announcements, triggering sharp swings in investor sentiment both globally and locally,” Reedman said. “This was an unexpected jolt, but advisers largely stayed the course with the majority expecting client allocations to Australian and US equities to remain steady as they assessed how volatility would play out.”

“Markets have since rebounded and this instinct to remain disciplined has proven correct. It reinforces the value of financial advice in helping investors navigate market uncertainty and to ensure their portfolios are protected across market cycles.”

“While following the crowd and investing in the big US tech stocks has driven outsized returns for investors in recent years, looking ahead more active sector and stock selection is going to come to the fore,” Reedman said.

“It is likely global macroeconomic and geopolitical tensions will continue and for investors that means navigating a period of ongoing uncertainty and volatility. Advisers have been quick to look further afield for pockets of opportunities – such as emerging markets, small caps, and private markets – that can provide both diversification and alpha to a client’s portfolio.”