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In what has been a challenging year from both an economic and regulatory perspective, resilient advice firms are embracing change and looking to the future, reveals new research from Dynamic Planner, the UK’s leading risk based financial planning system.

Published today, Dynamic Planner’s third annual Spotlight Report ‘Resilient and Embracing Opportunity: The financial advice landscape in 2023’, has found that while regulation was cited by 1 in 4 as being the no 1. headache for 2023, firms have shown their mettle, with 9 out of 10 confident they have met the key outcomes of Consumer Duty despite the significant challenges it presented.

Technology has been a key enabler, with 85% of the group, drawn from one of the largest advice communities in the UK – the 6,950 users of Dynamic Planner – saying it has improved their ability to serve clients, and close to three-quarters believing it is also helping them to meet regulatory requirements.

Yasmina Siadatan, Chief Revenue Officer at Dynamic Planner said: “The financial advice industry has embraced technology and its ability to help firms meet regulatory requirements, whilst unlocking productivity gains and deepening client relationships. Advisers were faced with a significant test this year in the form of Consumer Duty – but despite the challenges, the mood is one of resilience and looking to the future.”

Overall, the picture that emerges from this year’s survey is of a thriving industry. Firms continue to increase adviser numbers, and the vast majority of advice professionals are serving more clients than they were three years ago. However, 2023 undeniably brought challenges in the form of a more difficult economic environment and a major regulatory deadline. As a result, the picture is more nuanced than it was in 2022.

Key findings for 2023 include:

Yasmina Siadatan continued: “Overall, despite the economic environment and regulatory shift, the mood is positive, and some of the challenges may be easing as 2023 draws to a close. Although Consumer Duty implementation has not been easy with firms viewing regulation as their biggest headache – they also are confident they have got it right.

“Firms are making significant productivity gains through the use of apps, tools and other new technologies, allowing advisers to service more clients more efficiently. As these efficiencies grow, firms could unlock the ability to service lower-value clients – something they currently identify as too time-consuming for the profits available.”

Download the full Spotlight report.

By Newton Investment Management

Against a backdrop of volatility and macroeconomic uncertainty, investors might be wary about the future. Here, Newton multi-asset chief investment officer Mitesh Sheth and FutureLegacy portfolio manager Lale Akoner outline what they think makes a robust multi-asset portfolio in the current environment.

We have entered a market regime characterised by deglobalisation, decarbonisation and divergence, which requires an active, dynamic and sustainable approach to portfolio management, according to Newton multi-asset chief investment officer Mitesh Sheth and FutureLegacy portfolio manager Lale Akoner.

“We believe this next decade will be unlike anything we have lived through before,” says Sheth. “We cannot just rely on historical models and data, or experience alone to navigate this volatile regime.”

Sheth thinks volatility in markets has led investors to be nervous about saving for the future.

“People want their investments to keep pace with inflation, they want to remain resilient through this market volatility and leave a legacy, not just for their own kids but for all our futures on this planet,” he adds.

He argues in this environment it is important for investment management to draw heavily on multiple research inputs across asset classes. At Newton these include quantitative, fundamental, and sustainability research and even investigative journalism.

On a thematic level, Newton’s research considers the macro themes of big government, China’s influence, financialisation and the great power competition; and micro themes of the internet of things, smart everything, tectonic shifts, picture of health and natural capital.

Sheth says bringing this all together enables the investment process to be ‘joined up, agile and able to spot opportunities others miss – now and in the future’.

Dynamic and active

Other important factors in the current environment, Sheth adds, include being directly invested and actively managed.

“At a time of great divergence, we believe passive strategies may struggle to deliver positive real returns,” he says.

Akoner concurs that as capital becomes limited, talented active managers have a higher chance of outperforming benchmarks. She notes 2022 was the first year since 2009 that most active asset managers of equity mutual funds were able to outperform the S&P 500 index .

“This is because liquidity is getting scarce and the dispersion between stocks and sectors is increasing, leading to a boarder opportunity set for active managers,” she adds.

Tactical overlay

In terms of portfolio construction, Akoner argues tactical asset allocation, using a derivative overlay, is fundamental to navigating the current market volatility.

“We look at things like liquidity indicators, positioning and flow indicators as well as spreads data to see if there is any froth in the market,” she says. “We can use futures, forwards, and physical securities to navigate the environment tactically.”

In terms of long-term positioning, Akoner says the portfolios are overweight in healthcare and utilities while underweight in consumer discretionary and energy. When it comes to fixed income, portfolios are underweight duration relative to the benchmark.

“We think market is incorrect in pricing quick Fed cuts,” she adds. “We think especially the ample amount of Treasury issuance could contribute to the peak rate environment in the short term. When those rates start to come down, we could go neutral and move long equity futures.”

Sustainability

With decarbonisation also being a key facet of the new market regime, Akoner says it is important for an investment process to support the transition to a low carbon economy. This, she adds, means adopting an investment process that incorporates red lines for excluding certain companies. The FutureLegacy team then look for three buckets of investment opportunities:

  1. Solution providers – companies solving problems on sustainability through products and solutions. For example, heating, ventilation and air conditioning (HVAC) businesses
  2. Balanced stakeholders – companies with sustainable internal processes. For example, companies best in class for governance or high standards on human capital management
  3. Transition – companies at the start of their sustainability journey but showing a credible commitment to a transition business model

Akoner notes sustainable strategies in the wider industry have tended to have a growth bias, because they consist to a large degree of technology companies which can have lower carbon emissions. However, she argues quality is the primary factor the team look for which could then result in a stock being either value or growth.

Please feel free to contact us if you would like more information on the FutureLegacy range.

The value of investments can fall. Investors may not get back the amount invested.

For Professional Clients only. This is a financial promotion.

Any views and opinions are those of the investment manager, unless otherwise noted. This is not investment research or a research recommendation for regulatory purposes.

For further information visit the BNY Mellon Investment Management website: http://www.bnymellonim.com.

Dynamic Planner, the UK’s leading digital financial planning and advice platform, has analysed the data* of almost 17,500 advised investors views on the importance of sustainability.

As COP 28 gets underway, Dynamic Planner has found that while investing sustainably remains an important factor, as willingness to take risk increases the importance of sustainability reduces. The analysis showed that of those investors in risk profile 10, Dynamic Planner’s highest risk level, 6 out of 10 viewed sustainability as of low importance **

Chart showing the relationship between an investors risk (1-10) and sustainability (low to very high profiles)

Dynamic Planner also found that a larger proportion of men (39%) than women (26%) view sustainability as something of low importance, while (32%) of women view sustainability as of medium to very high importance compared to men (21%).

The stereotype that younger clients have a greater preference for sustainable investments due to supposedly being more values-driven and having a greater desire to seek investments that align with their views were not borne out in the analysis, with no apparent differences across any of the age groups.

In terms of which aspect of sustainability is held in highest regard, more investors said the ‘G’ of ESG is a priority as it means investments help companies treat all stakeholders fairly. Even a proportion of around 70% of investors who consider sustainability to be of low or some importance, agree with this statement, 17% and 51% respectively. Surprisingly fewer placed as much importance on ‘E’ – that investments help to improve the environment. The ‘S’ – that their investments should help improve people’s living conditions was the lowest priority of the three ESG factors. However, of those who view sustainability as of high and very high importance, a higher percentage strongly agreed that it is priority to help improve the environment, compared to improving living conditions and treating stakeholders fairly.


Chart showing importance placed on ESG statements

Louis Williams, Head of Psychology and Behavioural Insights at Dynamic Planner, said: “Our analysis paints a nuanced picture of attitudes towards investing sustainably and ESG factors. Events like COP28 which bring the world together to focus on issues such as climate action have ensured that many people understand the importance of acting in a sustainable way. However, using the power of their investments to shape the world for the better is perhaps limited for some due to the greater focus on trying to achieve a better return.

“We have found those investors who are more comfortable with increased financial risk are prepared to invest in market opportunities that go beyond the realms of companies that act in a sustainable or ESG risk managed way. This may be because climate change and risks of stranded assets have not yet been properly understood or their appetite for not missing out on certain market sector returns is still the overriding motivation. There also may well be some investors who want their fund managers to engage (by remaining invested) to bring about change.”

* Research has been undertaken using data from Dynamic Planner’s sustainability questionnaire, an industry first when it was launched in 2021 and created by the team behind the UK’s leading risk profiling process. A client’s sustainability preference is profiled on a scale, like their attitude to risk, providing you with a foundation for a conversation and enabling you to match it with solutions with ESG ratings available to research in Dynamic Planner.

Dynamic Planner also offers clients access to independent and whole of market ESG research of more than 32,000 funds. Guard against greenwashing and trust that the research is objective and is rigorously completed by a 200-strong team of analysts at MSCI, a world leader in the field which has been doing it longer than anyone else.

** Risk Profile 10 – Likely to contain very-high-risk investments such as emerging market shares and a small amount in high-risk investments such as shares in UK and overseas developed markets.

By Minerva Fund Management Solutions

For a number of years, financial advisory firms have operated in an environment that is ever changing and bringing increased challenges to their business model. One challenge is managing a range of client portfolios across a range of clients and asset classes.

As a financial advisory firm, it is an expectation that the suite of products offered will be broad, flexible and potentially encompass a range of investment options that meets a varied set of client needs, particularly for firms holding themselves out as independent.

PROD has resulted in financial advisory firms offering their clients solutions based on client lifecycles (the ‘target market’), that can contain a variety of investment solutions including active, passive, blended options, bespoke investment management and the ability to meet a client’s ESG preferences.

Needless to say, Consumer Duty is a piece of FCA regulation that brings another challenge, which requires a financial advisory firm to scrutinise their business and formally document how they meet the four client outcomes, taking into consideration a number of requirements such as client needs and the associated costs aligned to a level of service or tariff that represents fair value.

This has led financial advisory firms to explore opportunities to simplify their processes, and one opportunity that is generating more interest is unitising existing client investment solutions within their Centralised Investment Proposition (CIP).

The rationale for this is due to a variety of reasons, so there is no ‘one size fits all’ approach but to give you an example; under the Consumer Duty, good client outcomes for all clients is one of the core principles, if a financial advisory firm is managing a CIP across multiple platforms and each platform trades with a different modus operandi, then investment outcomes will inevitably be varied across their client base. Firms will need to think through the implications of this under their Consumer Duty procedures.

A unitised fund solution can enable a financial advisory firm and its clients to access the same investment solution and have similar investment outcomes. In addition, there are a number of other factors that could lead a financial advisory firm to consider unitisation as an option for their business. It has the potential to provide:

In addition to the above, in our view, a unitised fund solution may help a financial advisory firm satisfy two of the four outcomes under Consumer Duty, namely Products and Services and Price and Value. This is because under the Consumer Duty, products that already comply with the Product Governance Rules in PROD and the Collective Investment Scheme Assessment of Value Rules in COLL, can satisfy these two Consumer Duty Outcomes. As a result, the use of FCA regulated unitised funds could achieve these two outcomes.

So, there are a number of fundamentals as to why a financial advisory firm could consider this option to augment their CIP. However, before a financial advisory firm reaches a conclusion that a unitised offering is a good move for their business, there are other factors that need to be considered before they can press the start button.

As a starting point, a financial advisory firm will need to compare a client’s current proposition with the potential unitised investment offering. Prior to undertaking this comparison, there is perhaps a perception that a fund offering may increase the ongoing charges figure (‘OCF’). However, this is not always the case and before making this assumption, it is always worth having an in-depth discussion with potential providers. Of course, one key factor in an overall OCF is fund size, and in our experience, making a unitised solution as part of a CIP viable requires AuM of at least £50m per fund.

Another aspect to consider is client reporting. A client using a Model Portfolio Service for example, can have the added benefit of a client viewing individual holdings in a quarterly valuation and take comfort their portfolio is diversified; compared to a unitised solution with just one or two fund holdings. Having said that, there are technology solutions that are available and will offer a ‘look through’ service.

In essence, there is no overriding rationale as to why a financial advisory firm should, or should not, offer a unitised investment solution to their clients. The most optimal outcome will, of course depend on their business model, client requirements and what is most suitable for their clients.

Find out more. Contact Mark Catmull, Sales and Marketing Director, Minerva Fund Management Solutions.

Dynamic Planner, the UK’s leading risk based financial planning system, is now risk profiling the world’s oldest collective investment fund, F&C Investment Trust. Launched in 1868, F&C Investment Trust Plc is managed by Columbia Threadneedle Investments with Head of Asset Allocation (EMEA), Paul Niven, being the Trust’s Fund Manager. It is a constituent of the FTSE 100 index managing over £5bn in assets1.

Chris Jones, Chief Proposition Officer at Dynamic Planner, said: “We are delighted to welcome F&C Investment Trust to Dynamic Planner. When it comes to investment trusts, F&C is a household name, and having launched in 1868, it is the oldest collective investment.

“In recent years we have seen profound changes, both in the way advice is given and how technology is helping to power advice. If a 157 year old Investment Trust can embrace technology, then so can you. In a client focused world, understanding the client outcome that a solution can deliver is more important than its structure, and appropriately including Investment Trusts enables advisers to maintain a consistency of approach when assessing suitable investment solutions.”

Steve Armitage, Co-Head of UK Wholesale Distribution at Columbia Threadneedle Investments, added: “We are delighted F&C Investment Trust has been added to the suite of investment solutions being risk profiled by Dynamic Planner. Through our longstanding partnership with Dynamic Planner, advisers are now able to select portfolios that are aligned to their clients’ individual risk requirements from across our range of Multi Asset solutions, including our low cost, active CT Universal MAP range, our risk targeted CT MM Lifestyle range and now F&C Investment Trust.”

1 Total assets as at 31.08.2023 of £5.4bn – source: F&C Investment Trust & Global Trusts (fandc.com)

The Dynamic Planner Investment Committee met on 23 October and reflected on the implications of the global stagflation environment, with negative earnings growth, persistently high inflation and Central Banks unlikely to pivot to significantly cutting interest rates anytime soon, for fear of inflation spiralling out of control again. Many developed economies, particularly in the case of the UK and US, are teetering on recession and may have already experienced periods of intermittent recession, without necessarily realising it.

The continued flatlining of the UK economy for such a long period was also a subject of discussion. Inflationary pressures (particularly from semi- and low-skilled wage growth) remains stubbornly high with interest rates, after 14 hikes so far, likely to remain high for longer. Rising fuel prices, as a result of the rising tensions in the Middle East, could also delay the more recent falling headline inflation numbers.

Quantitative tightening by Central Banks, to reduce their balance sheets and higher interest rates, means major concerns persist for the overvalued Global Government Bonds. Bond yields, having risen steeply at the shorter end, saw the curve flatten, but it remains inverted, which traditionally is a recessionary signal. Whilst interest rate normalization continues, negative real bond returns are to be expected for the foreseeable future, as high inflation persists and the US / global yield curves steepen.

With the prospect of further periods of volatility associated with the ongoing geo-political crises, and the inevitable run in to next year’s elections in the US and UK, the IC focused on the diversification benefits of the benchmark allocations and the stress testing of the Value at Risk metrics.

Read the full analysis and update from the Dynamic Planner Investment Committee.

The aftermath of the Covid-19 pandemic and a tightening of global supply chains have unleashed an inflationary wave which looks set to drive greater corporate discipline, boost income stocks and increase the importance of dividends to investor returns, says Newton portfolio manager Jon Bell.

After years of low interest rates and low inflation, the economic tide is turning. Post the Covid-19 pandemic, Newton Investment Management’s Jon Bell says an injection of pent-up savings has introduced a fresh flood of liquidity to the market. This, in turn, has helped fuel a sharp spike in inflation across major markets – just as supply chains contract.

While the initial rise in inflation was at first considered a transient blip by some economists , Bell believes higher inflation levels are now here to stay, with major implications for global investors.

“Post-pandemic, we believe we are now seeing a regime change from a disinflationary world to one which is more inflationary,” he says.

“In recent months markets have seen growing evidence of deglobalisation and increased protectionism which will further support this. In our view, we will have to get used to the fact we are living in a more inflationary world than we were.”

All of this, says Bell, means change for both equity investors and the companies they invest in. In a post-global financial crisis (GFC) environment, where the corporate operating cashflows of some of the largest US technology companies and many others rose significantly, corporate excess and a general lack of focus on shareholder returns became more common. In some extreme cases, this led some companies to focus more on devising workplace gimmicks than delivering shareholder value.

Payback time

For Bell, changing market conditions mean it is now payback time for investors, with some investment managers now looking to subject the companies they invest in to much greater scrutiny, demanding more capital discipline and higher dividend pay outs.

“Although corporate margins have improved over time, many companies have given less back to shareholders in the form of dividends than they did historically. In our view, that needs to change. As we go into a different, more challenging economic environment, corporates need to offer more value to shareholders,” says Bell.

“The days when companies could spend as much as they like on whatever they want are behind us and we expect to see them begin to tighten their belts. The age of extravagance is over.”

Bell believes investment managers can play a key role in shifting corporate thinking, influencing management teams and encouraging them to change behaviours in order to generate greater shareholder value.

He says, “Ideally, we want to see more corporate discipline and the return of a healthier blend of corporate reinvestment and dividend pay-outs to shareholders. In fact, companies have not been doing a very good job of giving cash back to shareholders in recent years and, in many cases, we have actually seen pay-out ratios fall.”

Not all sectors are alike. While some US technology giants have a poor track record of rewarding their shareholders in recent years, some pharmaceutical and utilities companies have been far more responsive, with business models that do more to reward investors.

Against this mixed backdrop, Bell stresses the historic and ongoing importance of dividends in a world where slower economic growth can limit returns. The compounding of dividends from income stocks, can fuel a steady accumulation of income within portfolios. This strength of income stocks, he believes, was often overlooked during a long period of low inflation and heavy central bank intervention in markets, post the GFC.

Exciting investments

“The 2020s started with a record low return from dividends, and an environment of zero interest rates and excess fuelled by quantitative easing. Yet when financial bubbles burst dividends, can become a very important factor in building returns,” Bell says.

“It may be that in 2030 we look back on a decade where dividends have been critical to investor returns. The last time inflation was a major problem, in the 1970s and 1980s, strong returns came from dividends and income stocks do tend to outperform during similar periods.

“In inflationary markets, we continue to believe dividends are key and that the compounding of dividends makes select income stocks some of the most exciting investments in the current market.”

For more information on equity investing at BNY Mellon Investment Management, please visit our dedicated Adviser site.

The value of investments can fall. Investors may not get back the amount invested.

For Professional Clients only. This is a financial promotion. Any views and opinions are those of the interviewee, unless otherwise noted. This is not investment research or a research recommendation for regulatory purposes.

For further information visit the BNY Mellon Investment Management website: http://www.bnymellonim.com

1572505 Exp: 05 April 2024

Nearly three months after the 31 July deadline, the Consumer Duty continues to make headlines. Industry commentators talk of ongoing ambiguity, and subsequent inconsistent implementation of the far-reaching regulation.

As that dust continues to settle all around financial services, Chris Jones, Dynamic Planner’s Proposition Director, joined a first Consumer Duty Champions Forum webinar to answer concerns.

What are common misconceptions clouding the Duty? What is the regulation’s essence? Post-July, what now for the Duty? How will it influence upcoming regulatory activity, like the review of retirement income advice?

Chris was joined by Michael Lawrence, Chair of the Consumer Duty Champions Forum. Over a dedicated 60 minutes, the duo poured their experience into unpicking the above, and more. The webinar was hosted by the Consumer Duty Alliance, formed this year in March, an independent body helping firms implement the Consumer Duty.

‘TCF by another name?’

Michael Lawrence: Chris, how would you respond if I said, ‘The Consumer Duty is just TCF [Treating Customers Fairly] by another name. I don’t need to do anything new’.

Chris Jones: Yes, go through the TCF outcomes and some of those are covered in the Consumer Duty, but they are things which fundamentally any business would want to do, whether it’s in financial services or another walk of life. Why wouldn’t you do those things? But when you say simply, ‘Consumer Duty is TCF by another name’ you’re disparaging both.

The regulator might have expected TCF to have been better implemented across financial services and perhaps if it had been implemented with more energy, then maybe the Consumer Duty might not have been required.

But, for me, the Consumer Duty was the FCA listening to what it was hearing and becoming properly client-focused, and indeed more adviser-focused and more closely linked to the real world. What’s really going on? And adding more help, rather than simply setting out outcomes, which firms had to work out how to implement. The Duty provides a lot more guidance about how you go about that.

‘Real desire to drive change’

Michael Lawrence: I think you’re right Chris. There have been a number of significant strategic interventions by the FCA in the retail investment market. Things like TCF, RDR and Product Governance under MiFID. I think all of that has been aiming to reach a point where firms are thinking carefully about their business model. Who is it right for? Who is it wrong for? Then undertake activity in a way which is consistent with client outcomes.

Boiling down the Duty to its essence: is your service right for your target market of customers? Are you charging a fair price? Help your customers make good investment decisions. And support them with ongoing advice. There’s not a lot to argue there, but that’s not to say that in complying with the Duty there isn’t complexity and challenges for firms.

I know, because I was working at the regulator until earlier in 2023, that there is a real desire through the Duty to drive positive change throughout financial services, but specifically within the consumer sector. I think what we will find is the regulator moving from looking at the Duty, in and of itself, to looking at other topics through the Duty’s lens. Like retirement income advice, which is a good example and ongoing.

‘A change in mindset’

Michael Lawrence: Moving on. Some firms think that now the July 2023 implementation deadline has passed, the job is done.

I’d personally be nervous of taking that view. And that is not to disparage the significant work firms have done, in the run-up to July, but we’re very much at the end of the beginning, in one sense, with the Duty. Now it’s about embedding changes which have been made into BAU.

Hopefully, people working in financial services, whatever their role, now know or are learning to know what the Duty means for their firm’s BAU. ‘Am I acting to deliver good consumer outcomes? Am I acting in good faith?’ I think that thinking will continue to evolve.

Chris Jones: The Consumer Duty is, if it was required, a change in mindset for your business – of being entirely consumer focused in every thing you do and every decision you make. That change in mindset is full of positives, for your business and for your working life. So I think if firms saw it as simply something they had to do by July 2023, they’re missing a huge opportunity.

Hear more. Watch the full 60-minute discussion with Chris Jones and Michael Lawrence, ‘Cutting through the Consumer Duty noise – What really matters?’

Hear from Dr Louis Williams, Dynamic Planner’s Head of Psychology and Behavioural Insights, in candid ‘Conversation With’ Kim Dondo, of the Money Marketing Podcast. Louis talks about life before Dynamic Planner; how psychology impacts financial planning decisions, big and small, we all make; biases which creep into our decision-making process; and how weather and cash flow modelling forecasts share more common ground than you think.

[Money Marketing] What is your background Louis?

[Louis Williams] My background is in experimental psychology, different research using eye-tracking techniques, to see how people view information, for example, graphs. I began working on a joint, two-year project with the University of Reading, where I still have a visiting fellowship and Dynamic Planner, to see how we can create new tools and measurements, to understand more end clients and investors, and their behaviours. After the project ended, I joined Dynamic Planner permanently.

[Money Marketing] How does psychology play a role in shaping our financial decisions?

[Louis Williams] Many fields of psychology are relevant when it comes to shaping how clients make financial decisions, and not just important financial planning decisions, but decisions we make every day in the supermarket, for example.

One issue today is there are so many options out there when it comes to making a purchase, so much information, from so many sources – family, friends, your financial adviser, social media. We have limited time to make decisions and we are only human. We don’t have the capacity to always make the best choice, so sometimes we have to simplify the process.

For example, you’re in the supermarket and you only have a choice between two different products. In that instance you might look at all of the information available to you, like price, calories, ingredients. But if there are lots of products and you need to leave the store in two minutes, you might simply base your final decision on price, so your decision-making process changes.

Psychology, in that sense, is important for us to understand how that works, because those decisions and the shortcuts we take to sometimes make them leads to biases and ‘errors’. We make them because we’re trying to simplify the decision-making process.

[Money Marketing] What common biases today can financial planners be aware of in their clients?

[Louis Williams] Today, availability bias is important. By that we mean basing decisions on information which comes to mind quickly, or easily. Again, we can think of the example in the supermarket where you pick up a product and are instinctively shocked by its price. It’s more than you remember it being last week.

There is also recency bias, where we think what has happened recently will continue to happen in future. For example, if we make a decision on a 10, 20-year mortgage rate, based on what’s happening in the UK right now.

We can also think about anchoring bias. A client could be anchored or fixated on the value of their portfolio last year and how it is still making them feel, how optimistic they are or not, about the value of their portfolio this year.

[Money Marketing] How can behavioural insights lead to better outcomes for investors?

[Louis Williams] Before I joined Dynamic Planner, I helped run one eye-tracking study into meteorology, nothing to do with financial planning or investing. We showed people who took part graphs of weather forecasts. And what we found was that when we showed people a median line of what weather to plan for, people fixated on it, even when we asked them questions not relevant to that median line.

When we removed that line, showing them the same forecast, we found that people viewed the whole graph much more. We have applied that learning now to Dynamic Planner, in a cash flow planning forecast, which shows a median line of how they can most likely expect their portfolio to perform in future.

An adviser and their client can click on an option to reveal possible investment paths, which go into producing that median line, and enabling the client to really visualise the volatility inherent within their portfolio, and the ups and the downs when it comes to performance. It shares the story of while you may end up in a particular place, in future with your portfolio and its value, it may not necessarily be a smooth path or journey to get there. These types of techniques and experiments can be applied in financial services, even when initial studies and findings had nothing to do with the field. We can still learn.

Hear more from Louis Williams, Dynamic Planner’s Head of Psychology and Behavioural Insights in the Money Marketing Podcast.

 

Dynamic Planner, the UK’s leading risk based financial planning system, has announced a new integration with CURO from Time4Advice.

Advisers using the integration will be able to move clients’ data and reports between CURO and Dynamic Planner efficiently and securely. Once in Dynamic Planner’s single system, all client information and valuation data will automatically pull through to different processes. Room for error is removed and advice firms will be enabled to quickly and accurately provide clients with the information they need, when they need it.

Yasmina Siadatan, Chief Revenue Officer at Dynamic Planner said: “Data, data security and MI are fundamental to the growth of our financial planning partner firms which is why we are committed to our long-term strategy of continuously improving the flow of information to and from Dynamic Planner.

“Today we are delighted to announce our two way integration with CURO, the latest in our growing suite of strategic integration partners, consisting of the major back offices and platform providers. We know we help transform efficiencies of partner firms and look forward to driving further integrations as we build out the Dynamic Planner ecosystem.”

Roland Rawicz-Szczerbo, Founding Director of Time4Advice said: “For too long the disconnected nature of the legacy technologies in common use has frustrated the potential of our industry, creating an advice service that is limited in reach, neglecting the vast majority of people that need, but cannot afford, quality financial advice. Leveraging modern, enterprise grade technology, Time4Advice’s integration of CURO with Dynamic Planner is the first step in the delivery of a fully integrated ecosystem for financial advisers. We are all about challenging the inefficiencies manifest in today’s outdated technologies and look forward to working with Dynamic Planner and our other strategic technology partners to drive change in an industry that desperately needs it.”

This latest integration is the continuation of Dynamic Planner’s commitment to solving industry wide inefficiencies, a strategy at the heart of the firm’s vision.

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