Your Investment Preferences is digital tool that educates the clients on investment principles through bite size videos then captures their feelings and preferences on how their money is invested and managed through a few simple questions.
This creates a consistent enhanced experience for every client!
Watch a short introduction to Investment Preferences:
How does it work?
The clients will watch videos to educate them in several areas and respond when prompted, the videos are covering:
- Introduction to investing
- Customising Your Portfolio
- Your Ethical Preferences
- The 4 Main Types of Asset Classes
- Static vs Dynamic Asset Allocation
- Risk and Diversification
- Cost vs Value
They are also asked to prioritise their preferences and provide any comments to give context to their preferences.
Once the client(s) completes the survey. The adviser is able to review under the Investment Preferences tab and discuss with the clients.
The videos and client response form part of the record keeping. The adviser is able to confirm outcomes and keep additional notes of any discussion to complete the records around the client(s) investment preferences. The adviser confirms this in the interface so that the information is transparent to the client(s).
Why Investment Preferences?
For a long time, risk profiling has been in need of an evolution. We’ve always known this and have wanted to disrupt current practices for some time. Now, with Investment Preferences, we believe we have made a great start in creating a highly personalised risk profile experience that truly gets to the heart of how a client wants to invest.
Why did we want to do it?
Well, let’s be honest, there is only one party in the financial relationship that completes a risk profile and, in the main, it produces a score that is meaningless. It’s compliance flaunting as personalisation, with no evidence to support your clients understood what they were investing in. Worse, most clients still get invested into exactly the same outcome regardless of their score.
That needs to change.
The Lumiant DNA is to engage the disengaged or, in our words, the non-CFO spouse. The entire professional services experience has been designed around the CFO. We believe that is simply wrong and to be quite frank negligent. In our minds, everyone, no matter their financial literacy, must understand what they are investing in and why!
Our goal was to create an experience that engages both the CFO and, more importantly, the non-CFO spouse. An experience that educated the clients and could prove they understood their investment choices. Then, working in collaboration with their advisor, confidently make investment decisions that are recorded at the press of a button. Now that’s a world class ‘risk profile’, one that is aligned to a client’s preferences and supports them in living their best life.
The videos educate the clients with simple language and imagery, allowing clients to consume the information in a way that is engaging to them. Using videos ensures consistency in discussions, and in itself is a record of the discussion.
The questions are designed to capture their preferences after being educated in investment concepts. They are not designed to produce a scored outcome, as scores may be unfairly skewed and do not always translate to a tolerable asset or risk allocation. Rather the Investment Preferences module is designed to educate the client and guide them along the decision making process, and for the client and adviser to work collaboratively to obtain an in-depth understanding of their needs. With this the client and Adviser will work together to confirm their risk group.