New consumer-centric financial product and distribution obligations from April 2021 offer astute financial advisers an opportunity to not only meet the requirements, but to gain an edge in achieving superior client outcomes and improve their business practices.
Most strategies in the market are too ‘cookie cutter’ and are not resilient enough to survive a downturn or an end of an investment cycle. What’s more, these strategies do not seem to adequately compensate the investor for the actual risk being taken. Are we really doing our best interest duty with the investment strategies that we are dispensing?
Looking at the current state of things, we have observed three investment ‘wrongs’ many financial planners are guilty of:
Goals Based Investing (GBI) continues to gain recognition and be better understood amongst advisers. In his article Goals Based Investing: Should it be the norm? Giuseppe Ballocchi describes GBI as the way of the future for financial advice. Are we finally seeing a shift from the more traditional Strategic Asset Allocation approach to GBI? The simple answer is yes. Why, because it makes sense. Client goals should determine investment decisions. And, there is a rising school of thought that SAA investing will not suit likely market conditions going forward.
Investors are more knowledgeable about the market and their portfolios than ever before. They can see that not all is right in the world and there is an air of fear and doubt sweeping through many financial conversations.
Matthew Walker is a passionate advocate of Goals Based Advice and Goals Based Investing, and former Chairman of the Association of Goals Based Advice. Today he is the Managing Director of Dynamic Asset and Chairman of Dynamic Asset Investment Committee.
In this interview, he shares his thoughts on:
An alternative investment is an investment product other than traditional investments such as stocks, bonds or cash.
The two significant trends in contemporary financial advice are Goals Based Investing and Managed Investment Services. While the client and business drivers of each are independent, both innovations are set to transform financial advisory practices over the coming years.
In this episode, we speak to Matthew Walker from Dynamic Asset about Dynamic Asset Allocation, Goals Based Investing and the Association of Goals Based Advice.
Many of the world's leading investors will tell you that nothing is more critical to long-term investment success than a clear investment philosophy.
