ARTICLES

We have been in a bull market since the GFC. Because of this prolonged cycle of bullish prosperity, many financial planners have become guilty of providing complacent investment recommendations.

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.

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:

• The client advantages of Goals Based Investing
• How the benefits provided to clients change the adviser relationship for the better
• How the range of business efficiency gains translates to profitable growth for financial planners

Jerome Lander is the Portfolio Manager at Dynamic Asset and one of Australia's leaders in the Goals Based Investing landscape.

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.