How steady Aussie advisers caught the bounce | Australian Markets

Financial advisers have proved their value amid the volatility which has impacted the market over the previous six months, in response to new analysis carried out by investment supervisor, Fidante.

Not solely has the analysis confirmed the reassuring steadiness of advisers by way of the difficult situations, it has additionally pointed to their preparedness to information their purchasers by way of a additional unsettling period.

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

The survey’s core findings have been that advisers have been proved proper in sticking with their intuition to carry steady by way of the tariff turmoil in the expectation that a market rebound would happen.

However, the survey additionally discovered that whereas advisers had sought to carry steady, the Trump regime rated as their high concern.

Encapsulating the different survey findings, Fidante stated:

• Views have been cut up on what’s subsequent: one in three (31%) anticipated the Australian and US share market to bounce back within six months, whereas 29% anticipated markets to fall additional, and 26% anticipated it to remain about the similar.
• In the inaugural survey in November 2024, advisers have been most involved about high equity valuations and inflation. In the latest version, these fears had been overtaken, with one in two advisers (51%) rating Trump’s financial insurance policies and tariffs as their predominant high concern as we speak.
• Advisers are more and more trying to alternate options to drive returns trying to increase allocations to infrastructure (29%), personal equity (22%), and personal credit (21%).

Releasing the survey findings, Fidante Affiliates normal supervisor, Evan Reedman stated it had captured in actual time how financial advisers had reacted to the sharp and sudden shift in market sentiment.

“The markets reacted strongly to the US tariff announcements, triggering sharp swings in investor sentiment both globally and locally,” Reedman stated. “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 stated.

“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.”