Investment advisors are getting better at their jobs, according to the distribution teams at asset managers who work closely with them. They’re using more data, stress-testing portfolios against historical scenarios, and educating their clients more effectively. This leads to more stable behavior among end investors.
This year, investors have faced many developments that have shaken the markets. In April, for instance, US President Donald Trump announced steep import tariffs on nearly all US trading partners, triggering significant market volatility. Currently, the market is also focused on unrest in the Middle East, while the July 9 deadline for trade talks between the European Union and the US draws near. If no deal is struck by then, Trump is threatening to impose import tariffs of fifty percent on European goods.
In a time marked by political uncertainty and structural shifts in areas like AI and infrastructure, investors are increasingly seeking advice.
“Asset managers are having many conversations with clients right now,” said Gerben Lagerwaard, head of continental Europe at State Street Investment Management. “Institutional investors in Europe are trying to get a grip on the geopolitical landscape and assess its impact on their strategic and tactical asset allocation.”
A shift in approach
According to Stephanie Lang, head of portfolio consulting at Blackrock in Europe, this demand for advice has led to a shift from a product-driven approach to a more personalized one. “There’s greater emphasis on behavioral segmentation to better understand client needs and to deliver tailored strategies during times of market turmoil.”
Altaf Kassam, head of investment strategy & research at State Street Investment Management in Europe, noticed the same trend. “There’s no one-size-fits-all solution,” he said. “We’re talking about clients from different regions with varying investment cultures and regulatory environments. In 2025, investors have more tools than ever to customize their portfolios.”
Diversification through ‘new’ products
One of the most frequently expressed needs from end clients in today’s uncertain environment is broader diversification, experts say. “Bonds no longer provide the balance with equities that they did in the fifteen years leading up to the financial crisis,” noted Kassam. Actively managed multi-asset funds are gaining traction, along with private equity, gold, yen, and Swiss francs.
“Advisors are constantly asking us for the latest data.”
Sebastian Lewis, senior strategist at Vanguard
Greater access to assets like bitcoin and private equity now requires advisors, often for the first time, to assess whether these “new” asset classes are truly suitable for their clients, adds Lang from Blackrock.
Improved quality of advice
Sebastian Lewis, senior strategist at Vanguard, believes the quality of financial advice has significantly improved in recent years, thanks in part to broader access to data that gives wealth managers more context. “Advisors are constantly asking us for the latest data—how markets have reacted during past recessions, over the last fifty years, and in currencies like the euro or Swiss franc. They want to stay up to date to avoid making rash assumptions,” he said.
Lewis explained that advisors now take a different approach when initiating conversations with clients. The emphasis is on creating the best possible plan to help clients reach their goals, without guaranteeing success. “It’s like a doctor looking for the best possible treatment for a patient—without promising a cure.”
“Investment advisors still often feel the need to intervene, even when it’s not necessary.”
Stephanie Lang, head of portfolio consulting at Blackrock in Europe
Lang noted that advisors still frequently feel compelled to take action, even when standing still might be the better option. “Think of a goalkeeper. He can dive left or right, but sometimes it’s better to stay put.”
Kassam said today’s advisors are more humble: they’ve learned that data doesn’t tell the whole story. “We can’t predict the future. You always need to account for a margin of error. That’s where I see real improvement in financial advice—portfolios are now tested against a wider range of scenarios.”
More stable behavior
Thanks in part to the improved quality of financial advice, Lewis saw more stable investor behavior. “There have been many crises and global challenges over the past decades, yet today more people are invested than ever before. I believe that’s because they are better informed and guided by their advisors.”
Lagerwaard of State Street added, “While many investors have questions about the role of the US dollar as a safe haven and the still-heavy US weighting in portfolios, we haven’t seen significant shifts from institutional clients this year.”
Kassam concluded that investors are currently trying to make sense of a new reality. “An advisor’s job is to uncover what has changed structurally—and what is just noise.”