Presenting a client's results from the risk activity

After your client has completed the risk activity you will receive the following email, notifying you their risk profile is ready.

To present a client's results after they have completed the risk activity, click the Present results button on the client's profile page. If you just want to review their results prior to meeting, you can access the Preview report or use Present results (but not finish the meeting).

Present results will open in a new tab in your browser, landing on the following agenda screen to give an overview of the meeting. 

On clicking Begin, you will land on following page, which frames up the conversation around the client's unique preferences, constraints, and goals coming together to guide their investment strategy.

The next page looks at the risk vs. reward decisions the client made in the activity. The blue discussion panel on the righthand side is there on each screen to guide the conversation and add action items.

Next, you will look at the client's Attitude to Risk score, which measures the level of risk they are willing to take. The graph shows how they compare to other investors. 

Following that, you will look at the client's Sensitivity to Loss score, which measures how unsettled the client may become during periods of market volatility. 

Next, you will look at which investment options align with the risk preferences of the client. The purpose of this page is for you and the client to have a discussion about which investment options they would be most comfortable with from a risk-return perspective, and how that might fit with their goals. To do this, we assign a Risk Comfort score to each portfolio. 

Risk Comfort represents the utility a client gets from each investment option. Utility is an economic concept that defines how much the customer prefers a product. The utility, and the Risk Comfort scores, for each investment option depend on the particular risk preferences of the client. 

Below, we see that the client is most comfortable in the Growth option, and their Comfort Zone, indicating where they have a relatively high degree of Risk Comfort that stretches between the Conservative and High Growth options. 

You can then visualise the trade-off between risk and return in the context of the client's primary investment goal in the Goal Projector. Advisers tell us that it’s helpful to be able to present simple projections to their clients, and discuss the impacts of taking more or less risk, or adjusting their contributions. This step complements the full planning process.

Open Goal Projector by clicking the Launch Goal Projector button on the bottom-right-hand corner of the page, and you’ll then be asked if the client's primary goal is Retirement income or Wealth accumulation. You can also select an investment option and finish the meeting at this point if you don’t want to progress to Goal Projector.

Within Goal Projector, you will enter some basic information about the client's desired annual retirement income or wealth accumulation goal, along with the client's annual investment contribution, income from other sources, and time horizon. You can prepare for a meeting by opening the investment meeting and entering this information beforehand (just don’t finish the meeting). 

On pressing Update we run 10,000 Monte Carlo simulations that forecast how their investment will grow over time. Goal achievability percentages reflect the proportion of simulations where the client achieves their goal by the target date.

Retirement Income projector

If the client is in the accumulation phase then you’ll see the bar view of their projected retirement income in each portfolio. 

In the example below, we see that the client's desired retirement income goal has a high achievability rating in the High Growth portfolio, although they are most comfortable in the Growth portfolio. This is where you and the client discuss if they are willing to move to a High Growth portfolio, and have a slightly lower Risk Comfort score, to help achieve their goal, or prefer to adjust their goal/other inputs.

If the client is in the decumulation phase, then toggle the Already in retirement option and you’ll see the drawdown view showing how long their money is projected to last, given they are drawing down their stated goal amount each year (inflation adjusted in the future). You can also enter a legacy goal if desired.

Wealth Accumulation projector

If the client has a goal other than retirement, or just generally wants to build their wealth, then use the Wealth Accumulation Projector to illustrate how their investment is likely to grow over time.

We ask the client to select an investment risk level before clicking Finish to complete the investment meeting. The intention of the investment selection is to capture how the meeting resolved, and make a record to take forwards to the next step in the planning process.

On clicking Finish, a pop-up will appear to confirm you want to complete the meeting. Action items are outlined, which you can add to if you discussed other items in the meeting, such as Estate Planning or Children's Education, and you will confirm when your next client meeting will occur.

Finally, clicking Generate Report will complete the meeting. A PDF report will be generated that summarises the client's risk preferences, portfolio selection, and the discussion you have just had.

To open the clients PDF report, click the blue text that says View Report in the centre of your screen. From there, you can email the client the PDF report from the investment meeting.

Did this answer your question?

If not, please feel free to reach out to us at customer-support@capitalpreferences.com