Since the banking and financial services royal commission, smaller, independent, specialist wealth platforms have been able to grow their market share at the expense of their much larger ‘legacy’ rivals — and share investors have jumped on for the ride.
The first quarter of 2025 was a challenging one for US equities, but Francis Gannon from Royce Investment Partners, part of Franklin Templeton group of companies, says the conditions for small-caps to flourish may be forming.
Recession jitters? Why clients need to hear from advisers now
With markets plunging, most advisers would be busy answering their phones, and seeing the banked-up messages mount. It’s happened to them before, and they know the drill….or they should know it by now.
“During times of market crisis, clients aren’t only looking for technical insight,” says Simrita Virk, account director at Capital Outcomes. “They’re looking for a connection and a sense that their adviser understands both the financial data and the human impact.”
According to Virk, the first rule in any period of heightened market stress is simple: be visible. “Being proactive, staying in touch and opening the door for honest dialogue is how you maintain trust when everything else feels uncertain.”
While many in the financial advisory sector have moved swiftly to reassure clients, not all communication has landed effectively. Some messages, says Virk, have left clients “feeling more confused or concerned.” Drawing on years of experience supporting advisers through multiple market cycles and to cut through the noise to build stronger relationships, she shares four key strategies Capital Outcomes uses when advising during volatile periods.
“Don’t rely on a single format,” Virk says. “A blanket email isn’t enough. You can consider combining short, heartfelt video messages with timely social media updates, blogs, and direct phone calls. Clients consume information in different ways, and a multi-channel approach ensures no one is left in the dark.”
“Stay flexible,” she adds. “Markets change quickly, and so should the messaging. If something shifts, be prepared to address it. And most importantly, acknowledge how your clients are feeling. Update your communication as the situation evolves, and never underestimate the power of empathy,” she says. “Acknowledge how clients are feeling, often they can be stressed, uncertain and cautious. They’ll appreciate that you’re attuned to more than just market data. Empathy is just as important as analysis in times like this.”
“Avoid jargon,” Virk cautions. “Clients aren’t looking for a masterclass in macro-economics. They want to know that their investments are being carefully managed. Keep your language simple and your message focused on what matters to them.”
“And remind clients why they chose you in the first place,” she says. “During times of stress, it’s important to highlight your expertise, your past success in managing investments and your long-term investment philosophy. Reassurance comes from knowing you’ve successfully navigated rough waters before.”
As recession risks continue to unfold, Virk encourages financial advisers to keep perspective.
“Crises are temporary but the way we respond to them can have lasting impact,” she says. “The advisers who lean into these moments with clarity, empathy and leadership will not only retain trust, but they’ll also deepen it. The bridges you build during difficult times are often the strongest ones.”
Rod Cobain, founding partner at Melbourne-based Townsend Cobain Private Wealth Partners, simply says, “It’s a time for advisers to earn their keep. Communicate!”
Cobain’s firm sent client communications last week and will put out another one or two pieces this week, but more importantly, its advisers are “getting on the phones.” On Monday morning, the firm discussed its communications plan.
“We’re checking-in with clients and letting them know we care and to remind them that they have a plan in place to manage volatility. With our advisers we discussed and agreed key points and stories that would help us distil the complex into simple, calming conversation,” he said.
Secondly, said Cobain, it’s important to have a framework for decision making. “We called an ad hoc investment committee meeting this morning (Monday). It was a good opportunity to see the investment philosophy and process in action – we have been getting more defensively positioned in our Growth Portfolio over the last 12 months. Typically we are too early, but we preference capital preservation when market valuations start to stretch. We have a plan and reconfirmed it in our discussions.
“We understand on a look-through basis how the Growth Portfolio is allocated and what we want to top-up when opportunity presents and the order in which we are going to do it…i.e. unwind shorts, place surplus cash, rotate out of defensive positions/managers into more risk.”
Finally, he says, advisers have to understand and accept that “anything we change will take time to deliver outcomes. We are not investing for tomorrow but for the years ahead,” Cobain says.
