The introduction of the US administration’s ‘reciprocal tariffs’ has triggered significant volatility across global markets. A recent 90-day pause in some duties provided temporary relief and prompted a sharp market rally, but broader trade policy shifts continue to challenge businesses. For many asset managers, this is not just a geopolitical adjustment, it is a moment to re-evaluate how they structure, operate, and invest in a more fragmented global economy.
Reshaping investment strategies and capital structures
Trade-dependent sectors such as multinational corporates, real estate investors, and cross-border asset managers are feeling the pressure. As tariffs reshape traditional trade routes and cost dynamics, business leaders are adjusting capital structures, reassessing supply chains, and reconsidering regional investment strategies. The environment remains uncertain, particularly as major tariffs are still in place and key trading partners like China were excluded from the recent pause.
Private equity firms are especially exposed. Illiquid portfolios may face performance pressure, while fundraising becomes more challenging. Managers who have demonstrated the ability to navigate macroeconomic volatility and structure defensively are likely to be favoured. Many firms are also focusing on preserving income by aligning expenses more closely with revenue movements and introducing more variable cost structures.
How can firms respond to volatility
As market volatility continues to rise, firms are adjusting their strategies to build resilience, manage risk, and protect investor value. Managing currency fluctuations, liquidity pressures, valuation impacts, and deal cycle disruption calls for both tactical responses and long-term structural solutions.
- FX and currency risk management: Currency volatility can have a significant impact on portfolio returns, especially for firms with international exposure. Implementing FX strategies such as forward contracts, options or other OTC derivatives can help mitigate currency risk and reduce costs. Even smaller trades can benefit from tailored execution strategies and enhanced pricing through expert providers.
- Hedging and treasury strategies: With geopolitical and economic uncertainty driving market swings, robust hedging frameworks are becoming increasingly important. Active treasury management, including cash flow forecasting, interest rate hedging and counterparty risk monitoring, supports operational stability during periods of heightened market stress.
- Liquidity management: Managing redemptions and ensuring access to capital during turbulent markets is a growing priority. Solutions range from adjusting cash buffers to exploring alternative financing structures, including short-term credit facilities or asset-backed lending options.
- Real asset structuring: Volatility has also impacted project timelines and capital availability across real estate and infrastructure. Improved capital flow planning, more transparent investor reporting, and responsive structuring can support communication and help maintain investor confidence during periods of disruption.
Find out how we can support your strategy
The road ahead remains complex, but with the right infrastructure and support, asset managers can adapt with confidence and continue to meet their long-term objectives. We do more than support your strategy. We deliver the end-to-end solutions needed to manage volatility, reduce risk, and maintain momentum in a shifting global economy.
- Fund structuring and nearshoring: We establish and administer European-domiciled funds, as well as nearshoring solutions through Mexico and other jurisdictions. These structures help asset managers respond to changing trade routes while maintaining tax efficiency, investor access, and operational continuity.
- Regulatory services: Our compliance teams operate across more than 50 jurisdictions, ensuring timely delivery of off-cycle reporting, investor disclosures, and governance requirements.
- Digital distribution infrastructure: Through our WealthTech solution and our digital fund infrastructure, we provide access to global private markets. Our tools enable greater flexibility, enhance transparency, and allow for more effective investor engagement.
- Integrated service platform: Our single-source model connects asset managers with fund administration, depositary, custody, banking, and risk services through one relationship. This approach simplifies oversight, reduces operational costs, and ensures consistent support when expanding across markets and asset classes.
Get in touch to learn how we can help you manage risk, adapt your operations, and uncover new investment opportunities in the face of global tariff changes. Whether you’re looking to protect performance, strengthen infrastructure, or raise capital, we’re here to support you.
*The information provided is for general informational purposes only and does not constitute investment advice. Always consult with a professional financial advisor before making any investment decisions.
