© finametrica pty limited 2014. © finametrica pty limited 2015 managing your clients’ behaviors...
TRANSCRIPT
© FinaMetrica Pty Limited 2014
FinaMetrica+
Redtail
Tyler D. NunnallyU.S. Strategist
Atlanta, Georgia
© FinaMetrica Pty Limited 2015
Today’s Agenda
Managing your clients’ behaviors
Keeping your clients invested through good times and bad so they can achieve their financial goals
I’m going to explain how….
© FinaMetrica Pty Limited 2015
FinaMetrica Privately owned, Sydney-based, Australian company
Launched in 1998
Proven through market cycles
5,000+ leading edge advisers
23 countries, 7 languages
research-based
850,000+ risk profiles completed
89% subscription renewal rate
© FinaMetrica Pty Limited 2015
FinaMetrica Risk Profiling Process
1st – Know Your Clients Risk Tolerance assessment brings benefits of science to risk profiling. Report enables you to talk to clients about risk so you better understand their fears, behaviors and financial goals.
2nd – Keep Them InvestedGap Analysis is a collaborative tool that allows you to map risk tolerance scores to suitable asset allocations and enables clients to see their comfort zone.
3rd – Manage Their ExpectationsInvestment Risk & Return Reports provides comparable 40-year historical portfolio results, helping you frame clients’ return and volatility expectations more realistically.
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75% of advisors chose FinaMetrica for our scientific rigor
The Science
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Psychometric Test Development
Pool of Questions
Sample Questionnaire
Useability Trials• Understandable and answerable?
Norming Trials
Statistical Analysis• Valid, reliable and accurate?
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Risk Tolerance is Stable
If risk scores fluctuate it will impact Portfolio Selection
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Avoiding Pitfalls
9 of 11 risk profiling tools “not fit for purpose”
“Bad” questions and “ineffective scoring” cited as major reasons
Advisers didn’t understand the tools they were using
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The leading cause of Suitability failures is….
“Investment selection did not meet the customer’s attitude to risk”
Why does it matter?
© FinaMetrica Pty Limited 2015
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Arbitration Cases FILED
FINRA Arbitration Cases 1999- 2010
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“Bottom line: If I had to stand up in court and defend my process for selecting truly appropriate portfolios for my clients, I’d much rather have FinaMetrica in my corner.”
© FinaMetrica Pty Limited 2015
0the number of FinaMetrica subscribers we are aware of that
have ever faced Suitability related lawsuits or arbitration cases in the US since our launch in 2002
© FinaMetrica Pty Limited 2015
Contact
Tyler D. Nunnally(404) 320-6047
30-Day Free Trialhttp://riskprofiling.com/Trial