More than half (58%) of advisors have reported receiving higher volumes of client calls amid heightened geopolitical tensions, according to a poll by Fidelity Investments Canada ULC.
Fidelity’s survey featured a sample size of between 790 and 1,100 advisors. It was conducted on March 4, days after the U.S. and Israel launched a war on Iran, which has since expanded into a regional conflict.
Canadian advisors said they were allaying client concerns by keeping them grounded in the plan (36%), revisiting goals to keep clients on track (30%) and breaking down market movements (25%), the survey found.
Support for clients varies by each practice’s business model, Fidelity said. Financial planners are more focused on coaching and staying the course, while brokers prioritize targeting portfolio adjustments to respond to risks, the data showed.
Overall, 54% of respondents said they have or will tweak portfolios to diversify. At the same time, 43% reported making no changes to well-tested client plans.
The energy, resources and materials sector ranked as the top sector for diversification (33%), followed by technology and innovation (15%), financials and income (12%) and defence (11%). But 30% of advisors said they’re not exploring sector shifts.
Additionally, 26% of advisors said they’re using precious metals such as gold as a hedge and 17% are using these assets as a short-term tactical trade.