RISK TOLERANCE – the level of financial risk they can manage psychologically
RISK NEED – the risk associated with the return required to achieve their goals
RISK CAPACITY – the level of financial risk they can afford to take
SuitabilityPro™: FinaMetrica Profiler
Part of PlanPlus Global’s SuitabilityPro™ suite —FinaMetrica Profiler is the suitability solution! Built on the world’s most academically-validated psychometric risk tolerance assessment, you can feel confident in delivering defensible advice to your clients.
PlanPlus Global’s SuitabilityPro™: FinaMetrica Profiler leverages the power of the world’s best risk profiling tool to yield market-proven investment recommendations that “fit” every client’s unique needs and profile. Use our automated portfolios or design your own and apply your professional judgement to personalize investment recommendations that are based on real-world scenarios. Produce meaningful investment policies and build client trust and confidence through understanding and collaboration.
What is “risk profiling”?
Risk profiling is the process of establishing the level of financial risk clients take on in their portfolio by helping them work through their trade-offs between:
Clients’ risk profile is also influenced by their:
GOALS & TIME HORIZON – length of time desired to reach their goal
KNOWLEDGE & EXPERIENCE – familiarity with risk and market behavior
RISK COMPOSURE – behavior under conditions of risk
What’s the Suitability Score™ of your client’s portfolio?
Whatever your client’s financial objective — retirement, estate maximization, children’s education, major purchase, etc. — there is an investment portfolio that is most “suitable” for each objective. As an essential capability of FinaMetrica Risk Profiler, the Suitability Score™ provides a frame of reference for you to recommend the most appropriate portfolios, based on your knowledge of your client’s time horizon for each objective, along with their personal risk tolerance, capacity, need and composure.
How SuitabilityPro™: FinaMetrica Profiler works:
Advisors and clients can jointly review outcomes from other portfolios to select one that they collaboratively believe better meets the client's particular needs and circumstances. The collaborative process is elegant, understandable, and evidence-based, resulting in a suitable and defensible recommendation.
What’s an acceptable Suitability Score™?
Graphically show the risk range for the solutions you recommend that your clients implement. FinaMetrica Profiler calculates the Suitability Score™ for investment portfolios so you can align your recommendations with your client’s risk tolerance.
Do your clients understand investment risk?
Illustrate the past performance of your recommended portfolios in a way your clients will instantly understand. Seeing the real-life ups and downs of the market prepares clients for the inevitable volatility they will experience over time. It also demonstrates the depth of your discussions about suitability.
Can you demonstrate your professional judgement?
Employ our Professional Judgement Matrix© to highlight the improved risk/return profile of your recommended portfolio vs. what you client has initially. Use the system-generated default portfolios or design your own parameters and have them automatically displayed.
This exciting new risk profiling and portfolio planning technology helps you evidence your regulatory requirements, grow business profitably and deliver better client outcomes.