Advisers must juggle clients’ conflicting objectives

financial-planning/portfolio-management/research-and-ratings/advisers/lonsec/

15 February 2013
| By Staff |
image
image
expand image

Advisers formulating and trying to achieve client objectives must understand the interplay between different objectives and how they impact each other, according to Lonsec head of investment consulting Lukasz de Pourbaix.

Most people segment their assets into different needs rather than viewing them as one big pool, he said.

Understanding the interaction between different objectives that a client has is critical for advisers, Pourbaix said.

For example, increasing or decreasing the importance of one objective will impact the other objectives, he said.

Advisers should also incorporate their clients' behavioural thinking in this objectives-based approach, he said.

Milliman practice leader Wade Matterson warned that advisers need to move away from an asset management approach and back to coaching and expectation management in terms of what objectives people have.

The advice process could then become honed around how to help clients meet those fundamental objectives, he said.

An objectives-based approach is more reflective of how people think about money, and once you frame it that way, managing clients' expectations and investment strategies becomes much clearer, Pourbaix said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks 1 day ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 6 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND