The potential impact of expansive tariffs sent shockwaves throughout financial markets in early April. Recent ISS Market Intelligence research has covered how this was reflected in the mutual fund and ETF market. The severe and sudden nature of the April 2nd announcement prompted anxiety from a wide variety of investors, which subsequently placed pressure on the intermediary advisors on whom many investors rely to manage their accounts. ISS MI fielded a survey of 134 financial advisors in April to understand how they were responding to the market upheaval and what they are most looking for from their home offices and asset manager partners.
Responding to volatility was understandably at the forefront of many advisors’ minds. When asked what outcome they were most concerned with solving, 38% said “volatility management,” compared to 28% for long-term growth and 26% for downside protection, as seen in Figure 1. Wirehouse advisors were significantly more focused on volatility management at 52%. Regional and independent broker-dealer advisors conversely weighed downside protection more strongly.
1. Most important outcome for advisors, April 2025
Volatility Management Stands as Top Issue for Advisors
Advisors were torn between a variety of threats to their business. While many mentioned dealing with familiar client behavior of selling at the wrong time and being unable to take advantage of the coming rebounds, a large number of advisors expressed severe concern about future economic conditions. Beyond the scale of market volatility simply making day-to-day business more difficult, others worried about the potential for prolonged down markets, recessions, and even loss of confidence in capital markets. The uncertainty of future policy decisions served to further exacerbate these concerns and draw out their potential resolution.
Amidst extensive pressures on their existing business, advisors have to field a large variety of investor concerns. Survey data collected by ISS MI recorded a sizable divide in behavior by client segmentation. Advisors cited a much greater need for reassurance from less wealthy portions of their client base, as seen in Figure 2 below. 47% of advisors said their mass market clients were primarily looking for reassurance, versus 12% of advisors who said those clients were looking to take advantage of dislocated markets. Those proportions flipped with more high-net-worth clients. Only 26% of advisors said their ultra-high-net-worth clients were primarily looking for assurance, compared to 31% that said those clients were looking to make opportunistic changes.
2. Advisor assessment of the most frequent client request by client segmentation, April 2025
Less Wealthy Clients Most in Need of Assurance, HNW and UHNW Clients Look to Buy the Dip
As investors seek help and reassurance from their advisors, intermediary advisors look to their employers and asset manager partners for further assistance in stabilizing both portfolios and client behavior. When asked what the most valuable services and resources are that asset managers could provide, advisors stressed the need for extensive information. Many cited timely and informative updates on market and policy changes, considering the constantly shifting developments on where tariffs would land. Others moved their focus to the near-term future, asking asset managers for “realistic projections on market performance in the short term” and “asset class outcomes based upon different tariff scenarios.” What advisors asked for most frequently were materials that they could use directly with clients to help reassure them. Asset managers’ extensive experience in navigating various turbulent market conditions positions them well to produce client-ready material that does not simply explain current market conditions but places them in a historical context that can comfort clients and emphasize the importance of staying the course.
When asked about what their employers could do, advisors echoed a similar need for projections, scenario analysis from their CIOs, and commentary to reassure clients that they had asked for from their asset manager partners. They additionally wanted more help than their other advisors and branch managers are better suited to provide. These ranged from more frequent communication with other advisors about what was working, greater assistance from their firms in operational tasks like managing client calls and updating client portfolios, and more actionable investment ideas on how to weather the storm.
Shifts in market and policy developments will continue to test advisors’ resolve. In the face of uncertainty, asset managers who can step in at the right time have a great opportunity to deepen their partnerships with financial intermediaries.
The full report, Advisor Pulse – Market Volatility, is available now. Download your complimentary copy today.
By: Alan Hess, Vice President, ISS Market Intelligence
