When constructing client portfolios, we often focus on the logical and analytical aspects and forget that our clients make decisions based on the more behavioral and psychological factors. In this session, we will describe the latest thinking in advanced portfolio construction, starting with the analytical basis and then describing how to best communicate these concepts to clients/prospects. We will examine behavioral decision-making and the psychological factors that influence why client do, or do not, take action on our recommendations. Additionally, we will explore better ways to communicate our information in a simple, easy-to-understand format, so that clients/prospects are motivated to take action and implement recommendations to their overall portfolio construction. 

Learning Objectives:

• Portfolio Construction- How to build better portfolios to include risk budgeting, asset allocation, and overall design, based on clients' stated needs.


• Behavioral Finance- with emphasis on the biases, emotions, and psychological factors that influence client investment decision-making


• Client Communications- how to best translate complex portfolio construction ideas into a simple, easy-to-understand format so that clients can make sound decisions regarding their investments and overall portfolio construction (to achieve their long-term goals).