Our risk-profiling process is driven by rigorous analysis of the underlying asset mix of a fund, as well as considering factors such as the flexibility of the investment mandate, monthly trend analysis of the underlying asset constituents and observed performance. Once this analysis is complete, the data is calibrated to the underlying asset forecast assumptions of the Dynamic Planner model. The expected risk of the fund is then determined using a scale from 1 (lowest) to 10 (highest) which can then be aligned to client risk profiles.
Every quarter, our fund risk profiling team carefully review the latest data to ensure the original risk profile assessment remains accurate, using Dynamic Planner’s latest set of Capital Market Assumptions.
In determining the accurate risk mandate of the client, Dynamic Planner enables advisers to use psychometric questionnaires in conjunction with risk-based goal planning tools. These include discussion prompts around risk capacity, how long a client intends to invest and their financial experience. Learn more about the Dynamic Planner risk profiling process.
