More Advisors To Use Risk Profiling, Asset Allocation Tools - Skandia

Harriet Davies

4 December 2009

Research by Skandia UK found that 60 per cent of financial advisors provide over three-quarters of their clients with a risk assessment and asset allocation plan, a further 16 per cent provide this service to at least half their clients, and 51 per cent expect this trend to increase.

Risk profiling and asset allocation tools are ubiquitous in the investment advisory community, with 97 per cent of the 200 advisors surveyed stating they were already using them, as the financial crisis has brought a renewed awareness of risk to asset owners and managers.

Meanwhile increasingly sophisticated online risk profiling and asset allocation tools are allowing the process to be streamlined, and as advisors make use of this technology more clients are being provided with regular and tailored risk profiles.

The research suggests fund platforms will benefit from this trend due to the potential of having fully integrated risk profiling and asset allocation tools. Seventy-one per cent of advisors said the availability of online tools on platforms would drive an increase in their use of platforms over the next 12 months.