© finametrica pty limited 2014. © finametrica pty limited 2015 managing your clients’ behaviors...

© 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.

© FinaMetrica Pty Limited 2015

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

© FinaMetrica Pty Limited 2015

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

tyler.nunnally@finametrica.comwww.riskprofiling.com

30-Day Free Trialhttp://riskprofiling.com/Trial