Investment Management Strategies and Solutions Trends Shaping 2025

How Can Financial Advisors Best Support Clients As Severe Market Volatility Continues?

Financial markets hate uncertainty. And while a healthy period of “what’s next?†is to be expected whenever new leadership takes over in Washington, this year – at least so far – has delivered a higher than average spike in market anxiety.

Even as many market pundits and economic experts believe the environment will calm with time, financial advisors and their clients have to navigate the here and now. So what investment solutions and strategies are they exploring for their clients in this current landscape?

Many product providers, RIA firms and dual-registrant enterprises are already evolving their approaches to address current challenges while positioning financial advisors for success in helping their clients meet their financial goals.

From RIAs to RILAs – What’s on the Menu?

To spotlight some actionable ideas for firms and advisors, I spoke to four leaders representing each of these industry segments to learn more about how they are approaching what might be a period of prolonged market volatility:

• Matthew Gaffey, President, Corbett Road Wealth Management, an RIA based in McLean, Va with $1.5 billion in AUM
• Chris Bravender, Fixed Income Manager, Prospera Financial Services, a boutique wealth management firm supporting independent advisors supporting $22 billion in total client assets
• Kevin Kennedy, Senior Vice President and Chief Sales & Marketing Officer, Consumer Markets, Pacific Life, a financial solutions provider headquartered in Newport Beach, Ca.
• Bill Sowell, CEO, Sowell Management, a North Little Rock, Ark-based, $5.5 billion RIA serving IARs and RIAs across the country

Tactical Investing: Matthew Gaffey, Corbett Road Wealth Management

Sander Ressler: Tactical investing is central to Corbett Road’s investment management approach. How is your proprietary tactical investing methodology different from your competitors, and how have you been able to build expertise in this area of investment management?

Gaffey: Our crFusion investment process thrives off the use of multiple approaches as part of a client’s solution. In particular, for tactical solutions, we have two methodologies that serve to assess and manage risk across multiple strategies. The first, macrocast, gauges ‘big picture,’ macroeconomic data that seeks to monitor and manage significant recessionary pressure. 

The second, microcast, puts more emphasis on technical analysis and provides a ‘relief valve’ that is designed to trigger much earlier. By using multiple methodologies, we not only create a portfolio that has the ability to navigate through several market environments but creates behavioral alpha by providing clients with more emotional fortitude in times of volatility when they need it the most.

Fixed Income Solutions: Chris Bravender, Prospera Financial Services

Ressler: What is the utility of fixed-income solutions to address market instability? And how should financial advisors discuss these opportunities with clients, especially during periods of volatility?

Bravender: During periods of equity market volatility, fixed-income assets can provide stability to a portfolio, but not all fixed-income solutions are created equal. If stability is a primary objective, it’s important for advisors to focus on high credit quality. While it is tempting to reach for the yields provided by more speculative credits, equity market volatility is often accompanied by a renewed sensitivity to credit risk as well. For this reason, high-yield (e.g., low credit quality) bonds are historically more vulnerable to their own price declines as volatility rises.

Advisors must also be aware of the difference between bond funds and individual bonds. The key stabilizers to fixed-income holdings are both the coupon (the stated interest rate) and the maturity date. While bond funds can offer diversification and access to professional managers, the investor generally forgoes an essential element of core bond holdings, the maturity date. 

Separately managed accounts dedicated to fixed-income strategies can professionally source high-coupon bonds without sacrificing credit quality. Any price fluctuations can feel uncomfortable, but shrewd investors own such bonds to replace anxiety of credit risk with the relative confidence that the bond will be redeemed at face value on the maturity date; an assurance not offered by the equity markets. 

RILA Solutions: Kevin Kennedy, Pacific Life

Ressler: Pacific Life recently launched a registered index-linked annuity (RILA) solution for financial advisors to align with their end clients. How can a RILA help the end clients of financial advisors weather periods of market volatility? And how is your RILA different from other RILA solutions today?

Kennedy: The ability to mitigate market ups and downs is just one reason we’re excited to have a RILA in our suite of annuity products. RILAs empower clients to take advantage of returns linked to an equity index, while delivering a degree of downside protection that many consumers seek.

Many investors trail indexes by selling during downturns and only returning when they feel confident the environment has improved, resulting in missed opportunities for gains. RILAs help curb the emotional investing we tend to see, especially in volatile markets, by offering protection features that allow more focus on long-term financial strategies.

We offer several strategies within our RILA tailored to various risk tolerances and timeframes. Differentiating ourselves in a sea of RILAs was a key focus. We curated a mix of what we think are the most compelling RILA features found in the marketplace and then introduced our own unique combination of crediting strategies, a fresh twist on protected income and other features currently not found elsewhere. 

Curating and Selection of Investment Managers: Bill Sowell, Sowell Management

Ressler: In this era of prolonged market volatility, what can RIA solutions providers do to best support investment management, selection and oversight by RIAs who generally outsource or delegate a significant portion of their investment management capabilities?

Sowell: Supporting RIAs effectively starts with giving them the right education and resources—kind of like giving them a GPS for the investment world. Advisors need content that speaks to their needs, along with portfolios tailored to their clients’ goals. An ICIO (In-Sourced Chief Investment Officer) can be invaluable here, especially when armed with the tools to manage market volatility within the firm’s risk tolerance.

Each advisor or firm has its own investment bias, so it’s crucial that portfolios align with that bias while still being built to withstand an acceptable level of volatility. Time horizons matter too—short-term or mid-term money shouldn’t be exposed to equities (unless you’re secretly a thrill-seeker, which, fair enough). In the end, investing doesn’t need to be complicated—just focus on time horizons, risk tolerance, and educating your clients. That’s the real secret sauce for long-term success!