Engage has an integrated risk profiling tool, delivered through partnerships with industry experts, that allows you to risk profile clients to ensure investment suitability, then seamlessly go on to research investment solutions to match.
Defaqto supports a two stage process to determine a client’s agreed risk profile. First by assessing clients’ attitude to risk by obtaining their ‘natural’ risk profile, through the completion of a psychometric questionnaire, then having a discussion with them to reach an ‘agreed’ risk profile.
Attitude to risk questionnaire
Defaqto’s in house questionnaire is provided by A2Risk and this can be printed off, emailed or completed online. However if you prefer the Oxford risk or Finametrica questionnaire you can still use these and then complete the fund research in Engage.
Discussion with client
During the discussion with your clients you can review their capacity for loss as well as their required returns. Defaqto provides documentation to help you demonstrate the differences between the profiles to your client to help them make the best decision for their investment.
Model likely outcomes
You can then interactively explore the relationship between risk and return against your clients’ investment goals. Our modelling is powered by Moody’s stochastic engine, which looks at 1,000 scenarios to present the most likely outcomes. The engine data is updated quarterly, to ensure that the projections are taking into account current market conditions so you can be confident in the most likely outcomes.
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