Goals-based Investing for Advisers

Our 5-step process fosters more meaningful conversations with clients about their life and wealth goals

Change the conversation with your clients from one based on product and performance to one based on advice related to the achievement of personal goals.

We've spent years developing tools and processes -- and working with experts in behavioral finance -- to help you get to the heart of your clients' goals and measure how they are performing against them.

How is goals-based different?

A goals-based approach can help you deepen your relationships with your clients, while delivering practical strategies to help investors achieve their personal financial objectives. How?

  1. A focus on achieving personal goals. Success is measured against a range of investor goals and not against benchmarks alone. This makes investors less prone to making irrational investment decisions that hinder their long-term performance.
  2. A high level of diversification. The asset allocation of each portfolio is designed to be well-diversified across up to six asset classes—equity, fixed income, inflation-sensitive, income, liquidity and absolute return.
  3. Access to some of the world’s best managers. Our team of approximately 100 analysts worldwide selects some of the best from the entire universe of investment products, including institutional and boutique managers not usually available to the retail market.
  4. Continuous portfolio management. Our analysts continuously monitor each manager’s philosophy, process, people and performance. Using sophisticated technology, they monitor the portfolio holdings and trades to ensure that the portfolios are aligned with the overall strategy.
  5. Alignment with investor risk profiles. Designed to cover a spectrum of investor risk profiles, the portfolios can be mapped to some of the market-leading risk profiling tools.

Goals-based investing is a more intuitive approach for investors because it centers on meeting tangible objectives.

Here's how our 5-step process works.

Step 1 – Discovery

When you help clients articulate their goals, as well as their attitudes to risk and time horizon for each goal, it helps you:

  • Have a more meaningful conversation based on your client’s aspirations
  • Gain insight into both the financial and non-financial aspects of your client’s life

This will give your clients the perspective they need to stay the course during volatile times.

Step 2 – Assessment

Armed with the discovery information, you'll use our technology to help you select the investment strategies best suited to meet your clients' goals based on time horizons, attitudes to risk, current assets and ongoing contributions.

Step 3 – Advice

When you understand your client’s concerns, goals and objectives, you're better able to distill them into a plan that they can more easily understand.

Step 4 – Implementation

You can now proceed with the agreed investment strategies by completing the necessary paperwork to open, fund and invest the accounts according to the proposal and your client’s instructions.

Step 5 – Monitoring

Monitoring goes beyond just goal tracking, and should be an ongoing process that continues throughout the advisor/client relationship. Technology allows you to:

  • Track your client’s progress towards his or her specific goals
  • View the likelihood of your clients achieving their stated goals based on the most recent valuation available

We've been on the cutting edge of goals-based investment strategies since 2003.

Our groundbreaking paper, Goals-based Investing: Integrating Traditional and Behavioral Finance, paved the way to put our research into practice.