The full range of actions is complex, but the trade-off between the costs and benefits can be subtle. At Barclays, we have systematised the theories outlined in previous articles, to make it easy to deliver the most effective and simple interventions to each and every client.
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Every product on our platform is allocated, not just according to asset allocation, or risk, but also according to a number of secondary characteristics, each of which can be directly connected to investors’ Financial Personality Assessment™ scores. These dimensions will be familiar from the discussion above, and the figure below shows how these measures enable us to steer any client’s portfolio into the ‘sweet spot’ (in green) for each investor’s unique pattern of personality measures.
Figure 9: Financial personality to portfolio characteristics
This practical mapping technique nudges the overall portfolio toward the characteristics that make each investor as emotionally secure as possible, with minimal divergence from the long-term ‘financially optimal’ solution. Our Investment Philosophy lifts behavioural finance out of the abstract and enables it to make a simple and practical difference to the portfolio of each client.
To find out more about how we can design your investment portfolio around your personality profile and priorities, contact your Barclays relationship manager.