It’s common knowledge that one key area that financial planners can add value to clients is in helping them close the so called Behaviour Gap
The problem is there is actually very little in the way of a practical framework to help planners take account of their clients’ behavioural tendencies and biases.
That’s until a recently when the team at Barclays published a paper titled Overcoming the cost of being human (or, the pursuit of anxiety adjusted returns), which provide a very practical framework for planners to take account of client behavioral biases when building portfolios.
Greg B Davies, Head of Behavioural Investments at Barclays and the author of this report. He is also the author of the book Behavioral Investment Management: An Efficient Alternative to Modern Portfolio Theory.
In this podcast, Greg lays out a clear framework help planners take account of their clients’ biases in their investment process, including some ideas that planners can use i with clients immediately.