Clients primed to change investment strategies amid volatility fears

Nearly all advisers say clients are poised to make changes to their investment strategies if global market volatility persists in 2025.

Nearly every UK adviser (96%) polled by Wesleyan expects their clients to seek changes to their investment strategies if global volatility persists this year, putting fresh focus on strategies that will help keep clients on track for good outcomes, even amid market choppiness.

More than nine-in-ten UK advisers (92%) polled by Wesleyan said clients are primed to make further changes to their investment strategies if global market volatility persists in 2025.

Four-fifths (80%) of advisers said their clients had already changed their investment strategy since the US announced tariffs on 2 April.

Wesleyan’s research shows that advisers have already been quick to contact clients about market volatility in the wake of the US’ tariff announcements. So far, two in five (37%) have proactively reached out to a specific client segment to discuss the ensuing market volatility, while nearly three in five (57%) have contacted their entire client base.

James Tothill, Investment Specialist at Wesleyan, said: "Recent extreme market volatility will have understandably made some clients nervous – and many are clearly still worried about what might be yet to come.

"As all advisers know, while some clients will benefit changing their strategy, others might be better sticking with their plans. Of course, at the peak of a crisis, it’s often tempting for clients to think 'this time it’s different' – something often said to be the four most dangerous words in investing. With the benefit of hindsight, making no changes to portfolios is often the best thing to do, but of course this itself can be a tough decision at such an emotional time.

"Of course, great financial planning about delivering peace of mind alongside good outcomes. In this environment, advisers might find themselves spending more and more time helping clients avoid making emotionally-led decisions to ensure plans keep delivering good outcomes. This could involve looking at ways to address volatility, rather than knee-jerk changes in the underlying assets themselves.

"Smoothed funds could be very useful here. These enable clients to invest in a range of asset classes, including property, but use an actuarial mechanism to ‘smooth’ the investing journey – helping address some of the spikes that could cause worry, while also helping them stay committed to their long-term strategies, even when markets are bumpy."

The value of investments and any income can go down as well as up. Investors may get back less than they invest.

Methodology

Based on a survey of 300 UK-based financial advisers, conducted by Censuswide on behalf of Wesleyan between the 7th and 14th of May 2025.