Investments  

Threesixty is all around psychometrics

Support services firm threesixty has revealed 68 businesses have signed up to its psychometric ‘Investor Profiler’ tool since its launch in June.

The tool, developed in conjunction with risk tolerance specialist firm FinaMetrica, features a 12-question test designed to assess the key personality traits likely to shape a client’s responses and tolerance to financial risk.

This can then be mapped to strategic and tactical model portfolios and asset allocation models for advisers wishing to select their own funds, or to the wide selection of managed investment solutions already mapped by FinaMetrica.

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Phil Young, threesixty managing director said: “The Investor Profiler solution fits with our ethos that advisers should not slavishly follow a linear process and dump clients into the nearest fit investment.

“The tool allows the adviser to use his common sense, jump in and out of the process at any time, and use his conversation skills with clients. At the same time, it gives a good indication of which portfolio might be more suited to a client’s needs and risk appetite, and the rationale which underpins that decision.”

Adviser view

Ian Brown, director and chartered financial planner at Swansea-based Cosgrove Brown Financial Planning, said: “I think psychometric testing is very valuable, and is a good way to help analyse a client’s views on investment risk. Clients need to be educated as to where on the risk scale they have been ranked.”