The marriage between a client’s psychology and their investments is the greatest determinant of how happy they will be with your performance during downturns. Watch your advice transform with better insight into risk mindsets.
A key outcome of risk tolerance profiling is selecting investments that will keep your clients feeling comfortable through peaks and troughs in the market. A comfortable client is more likely to be happy with your performance and advice, ultimately underpinning the longevity of your relationship with them.
The more appropriate a client's holdings are for their individual psychology, the less time you will spend assuring them that keeping their current investments is the best thing to do. Minimising emotion-driven requests to chop and change portfolio allocations will not only improve their performance, but also remove burden from you.
Psychometric risk tolerance profiling allows us to measure enduring and stable psychological traits. Our measurement process allows you to place clients into suitable investments for the long term, knowing that their portfolio will remain appropriate and acceptable for years to come.
Globally, regulators are reviewing risk tolerance profiling practices and the outcomes are clear - validated and reliable tools are critically needed and regulatory action is likely to be pursued in coming years. By getting ahead of the compliance curve, you're lowering the risk of remediation action.