Financial Advisers Remain Positive Amid Current Global Market Challenges

The recent survey conducted by Natixis Investment Managers reveals an optimistic outlook among financial advisers, despite facing formidable hurdles such as geopolitical conflicts, energy crises, and fluctuating interest rates. In the 2026 Finance Adviser survey, which sampled approximately 2,950 investment professionals across 23 nations, it was noted that advisers still anticipate a growth in assets under management, forecasting an increase of 11.9% in the short term. Over the next three years, they expect an average annual growth of 12.8%.

Understanding Market Challenges

Advisers are acutely aware that meeting these ambitious growth targets will not be devoid of challenges. They must navigate several structural hurdles, including technological advancements, intensifying competition, and an ageing demographic within their client base. For a significant proportion of advisers, 74% report their clients expressing anxiety over the current market instability, leading many to hoard cash rather than invest. This client sentiment complicates advisers' roles, as they need to work diligently to retain their clients' assets while steering them clear of ill-conceived emotional decisions influenced by market sentiment.

Interestingly, reactions to market fluctuations are often emotional; a substantial 58% of advisers assert that clients' fears prompt poor decision-making during tumultuous times—a lesson advisers are keen to communicate. Furthermore, chasing returns and unrealistic expectations can also prove detrimental, as half of the surveyed advisers highlighted these as significant missteps.

The AI Factor: A Double-Edged Sword

One of the most significant forces expected to disrupt the advisory landscape is artificial intelligence (AI). Over 76% of financial advisers believe that the potential for AI-driven growth is substantial, with many anticipating it will evolve to form a core part of advisory practices. About 71% of advisers are already implementing AI technologies in their workflows, allowing them to gain a competitive edge while freeing up more time to focus on client relationships.

However, this increasing sophistication in AI models can also create competitive threats. Around 49% of Millennial respondents and 40% of Generation X respondents prefer digital advice to traditional means, indicating a generational shift in how financial guidance will be accessed in the future. A remarkable 43% of advisers predict that improvements in self-directed investing tools will represent their most significant competition within the next five years.

Addressing Demographic Shifts

As demographics shift, the challenge grows for financial advisers to connect with younger clients. Currently, only a third of clients are under the age of 45, leading to a clear necessity for innovative strategies. Many advisers report that they are responding to this by integrating advanced digital tools and specialized services designed to appeal to younger investors, such as property market access strategies and student debt management. Social media platforms are also emerging as new avenues through which advisers can target younger demographics, with one-third of advisers actively leveraging these channels for outreach.

The Transition of Advisers

The ageing adviser population is another pressing issue, with many anticipating an exodus of seasoned advisers from the industry. While nearly 80% perceive this as an opportunity for business growth, transitioning practices effectively requires a well-thought-out business strategy. The overwhelming preference among advisers for succession is naming an internal successor; however, many cite difficulties in hiring younger replacements.

Darren Pilbeam, Head of UK Sales at Natixis IM, emphasized that while advisers face various disruptions, transitioning effectively amid market uncertainty requires a focus on the value proposition offered to clients. As advisers strive to maintain and grow their client bases, they must adeptly showcase their expertise and foster lasting relationships—something fundamentally different from the service provided by AI.

In conclusion, despite prevailing obstacles, the financial advisory field is ripe with opportunities for growth and adaptation. By embracing technology and refining their client engagement strategies, advisers can not only navigate the current challenges but also position themselves for lasting success in an evolving financial landscape.