Investors don't fail to reach their goals because of bad portfolios; they fail because they abandon good ones. In this white paper, Beyond Risk: Matching Solutions to People, sets out a new framework for investment suitability, one that goes beyond financial capacity to account for the emotional realities of how investors think, feel, and behave when markets are volatile.
Developed jointly by Oxford Risk and Standard Life, this white paper introduces the concept of anxiety-adjusted returns: the best outcome an investor can realistically achieve given the emotional strain they can endure, examining how smoothed funds can serve not just as an investment product, but as a genuine behavioural support tool.
With the FCA's Consumer Duty raising the bar on demonstrating genuine client benefit, understanding the full picture of an investor's emotional as well as financial circumstances has never been more important.
Download this white paper to discover:
- Why the gap between good intentions and real-world investor behaviour is the single biggest threat to long-term outcomes
- How anxiety-adjusted returns provide a more realistic and useful measure of suitability than traditional risk-adjusted returns
- Which investors are most likely to benefit from smoothing, and why
- How to identify behavioural traits, including composure under stress and impulsive decision-making, going beyond a single risk score
- How smoothed funds can help investors maintain composure through volatile periods, leading to better decisions and better long-term outcomes
