The Distribution Technology risk profiling tool is perhaps the most well-known system in the UK. It provides the user with a psychometric questionnaire to measure risk tolerance along with supplementary questions to measure capacity for loss and investing experience.

Dynamic Planner provides risk profiling which incorporates Client investment experience, their attitude to risk, capacity for taking risk and provide funds based on individuals risk.

Within the tool is their existing risk profiler which can be completed either by an app available from Apple’s iOS store or link with the inputs automatically populating back into Dynamic Planner or integrated practice management back office. It provides the user with a psychometric questionnaire to measure risk tolerance along with supplementary questions to measure capacity for loss.

The tool no longer uses Oxford Risk’s questionnaire but uses their own question set and stochastic projections to highlight the likelihood of achieving a goal and therefore the risk required. Distribution Technology also use their technology to map funds to one of their risk profiles so that advisers can match their clients both at an individual fund level as well as at a portfolio level.

Robert says:

“Dynamic Planner continues to provide extensive risk profiling capabilities. I am excited to see what they develop next.”

Our Thoughts

GOOD FEATURES

 

 

  • Dynamic Planner allows Risk profiling to be completed by the client either by an application available in the iOS store or via a link sent to the client.
  • Once information has been entered, it is automatically populated back into Dynamic Planner saving valuable time.
  • The system produces white labelled reports that aid to demonstrate the clients risk profile and plan to achieve investment goals via a suitable level of risk.

GREAT FEATURES

 

 

  • The system maps funds to one of their risk profiles so that advisers can match their clients both at an individual fund level as well as at a portfolio level.
  • Advisers can compare funds using whole of market investment feeds from FE Financial Express which helps to provide information for cumulative, discrete and calendar performance across sectors, indices or various benchmarks.

 

Improvements

 

 

  • A way the system could be improved is incorporating deterministic modelling to accompany stochastic modelling.
  • Increase the number of asset class models within the system.

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