Bridging the Confidence Gap: What Asset Managers Can Do to Support Advisors and Their Clients

Financial advisors are navigating one of the most complex macro environments in recent memory, and their sentiment reflects it. Recent media coverage has heightened concerns about the durability of future returns, particularly amid rapid advances in areas such as artificial intelligence, adding another layer of uncertainty for both advisors and investors.

According to this year’s Advisor Brandscape report from Cogent Syndicated research among financial advisors, four in ten advisors expected the US economy to improve in Q1 2026 but the proportion of those expecting conditions to worsen climbed from 18% in January to 27% in March, driven by geopolitical tensions, government decisions and stock market volatility. Investor sentiment is even more cautious, with only 31% expecting economic conditions to improve. This creates a meaningful confidence gap between advisors and the end-clients they serve while also underscoring the need for asset managers to lead with clarity, consistency and credible guidance rather than optimism alone.

How Are Financial Advisor Trends Reshaping Asset Management?

The competitive terrain for asset managers is undergoing meaningful structural change. Use of separately managed accounts (SMAs) is expanding as personalization, tax efficiency and objectives-based investing have become central to serving high-net-worth clients. The future outlook for exchange-traded funds (ETFs) remains strong, particularly for active ETFs, as the share of assets directed toward mutual funds continues to erode.

At the same time, the advisor workforce is in transition. The share of advisors 65 and older expecting to retire within two years has doubled from 12% in 2025 to 25% in 2026, with momentum toward team-based practices and succession planning also accelerating among older advisors, reshaping how and through whom asset managers must build relationships.

How Can Asset Managers Drive Advisor Consideration?

In this environment, trust is the single most powerful driver of advisor consideration. Delivering strong, consistent investment performance and providing information that actively guides investment decisions will serve to build and reinforce trust among advisors.

Competitive dynamics underscore this with the top firms in brand equity distinguishing themselves in these areas by:

• Reinforcing trust through ongoing guidance and support
• Emphasizing strong, consistent investment performance
• Delivering value through a range of quality product offerings, including active ETFs and SMAs

For asset managers, the imperative is clear: communication with financial advisors must anchor on demonstrable performance consistency amid a volatile market, differentiated thought leadership, portfolio construction guidance, and relevant products and solutions—particularly as alternatives gain traction, SMAs become essential for high-net-worth clients, and active ETFs drive the next wave of product growth. The asset managers that deliver with clarity and credibility will be best positioned to bridge the confidence gap and win advisor mindshare in a rapidly evolving market.

The full Advisor Brandscape report from Cogent Syndicated tracks the attitudes and behaviors of advisors and provides a holistic view of the advisor landscape including practice models, product and asset class use, brand perceptions and user experience, as well as benchmarks for the industry’s leading ETF and mutual fund providers. For information about the report, click below.