Risk profiling

Engage starts with built-in risk profiling to help you identify and agree your clients' attitude to investment risk. This allows you to ensure all future investment research is aligned to your clients' risk profile.

Accumulation

For the Risk Profiled Workflow, you can choose from three different risk questionnaires: Oxford Risk, Finametrica and A2Risk. Defaqto has developed its own accumulation Risk Profiles and risk rates funds to match these profiles. We have 10 Risk Profiles, with profile 1 representing the lowest risk, and 10 indicating the highest risk.

Accumulation Risk Profiles

Decumulation

For the Natural Income Workflow, there is a different risk questionnaire provided by A2Risk which is tailored specifically towards clients looking to withdraw an income. Unlike the ten Risk Profiles used in the Risk Profiled Workflow, our Natural Income Workflow has four Income Risk Profiles: Low Income Volatility, Medium Income Volatility, High Income Volatility and Capital Preservation.

Natural Income Risk Profiles

Model likely outcomes

Projection graphs powered by a stochastic engine allow you to explore the relationship between risk and return against your clients' investment goals.

The modelling illustrates the potential returns of your clients’ investments or income to facilitate discussion and clarity around capacity for loss.

 

 

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