Market Volatility Creates Opportunity

2022 has seen one of the most volatile markets in history with the S&P 500 experiencing nearly a 20% drop YTD and the Nasdaq dropping nearly 30% YTD. *1

87% of executives believe there is an increased cost of doing business through 2022 and into 2023. Of these executives 27% see the most increase in the pricing of raw materials, 14% in energy, 28% in labor, 15% in components and intermediate goods and 20% see an increase in the cost of transportation and logistics. All of which are causing market volatility. *1

According to a survey published by EY, 66% of Millennial investors feel financially unprepared with 67% of that number showing a desire for expert financial guidance. *2

The proportion of respondents working with FinTech to manage their wealth is expected to double from 9% to 18% over the next three years – attracted by the sector’s low charges, specialized digital experiences and low-friction switching. That growth is expected to be even more dramatic in Europe (increasing from 11% of respondents to 23%), Asia-Pacific (14% to 26%) and the Middle East (8% to 41%). *2

By partnering with wealth management software like Zephyr, managers can provide their clients with an extensively personalized approach to navigate economic and market shocks. Zephyr's expertise and comprehensive wealth management platform can prove invaluable.

62% of investors worldwide expressed intention to review their financial plans in preparation for future volatility, creating a great opportunity for wealth managers. *2

One way Zephyr can assist wealth managers is by helping them review and update financial plans during volatile periods based on historical data through utilizing comprehensive tools for portfolio analysis. By doing so, client engagement and satisfaction can be significantly enhanced, fostering stronger long-term relationships. Zephyr’s wealth management software also facilitates increased customization through its extensive portfolio presentation studio.

Moreover, the concept of client-manager relations is quickly gaining traction and is more pivotal than ever before. Clients are willing to pay more for personalized products and services, making it essential for wealth managers to provide a complete online view of their clients' financial positions and allow customization of portfolio reporting. Zephyr can offer wealth management solutions that enable seamless integration and presentation of client data, performance analysis, proposal generation and more, meeting, and exceeding client expectations.

Investment performance reporting remains central in clients' decisions to choose or switch between managers and advisors. There is a growing interest in newer asset classes such as alternatives, digital financial assets and ESG funds. Zephyr can support wealth managers in capitalizing on these opportunities by offering tailored reporting.

By offering extensive personalized guidance, options on digital financial assets and sustainable investments, wealth managers can ensure they meet the evolving needs of their clients and remain competitive in the market despite its volatility. Zephyr Financial Solutions can be a valuable ally for wealth managers in addressing the evolving demands of clients during times of market instability. By leveraging Zephyr's superior technology solutions, wealth managers can provide the level of personalization and expert guidance that clients seek, fostering stronger client relationships and portfolio growth. Learn more here.

Why the Stock Market Has Been So Volatile in 2022 | Entrepreneur *1

Investor behavior changes in face of increasing market volatility as demand shifts to active investments and FinTech, new EY report finds | EY - Global *2