Adhesion Wealth Advisor Solutions has reportedly added behavioral finance tools into its investment plans.
According to a report by Investment News, the tool will help adviser communicate performance and other updates in a way that protects investors from themselves.
Additionally, Adhesion has teamed up with turnkey asset management providers (TAMPs) to support adviser over client’s factor in fears, biases and emotions, according to the report.
As part of the move, the firm will rewrite the questionnaire that advisers give to new clients to identify their biases about money that could affect their investment plans.
The new investment plans and communications will be created for a client based on their risk tolerance, confidence level and tendency toward emotional or cognitive investing.
The improvised systems will be available for clients by the end of February.
Barrett Ayers, the firm’s chief solutions officer and managing director of portfolio management, said: For a client identified as a passive preserver, statements and other communications will track performance toward goals and avoid using too many statistics and details. In contrast, an independent individualist may receive a risk-reward analysis and lots of detail.
"We hope this allows advisers to communicate with their clients in an approach that’s consistent with their behaviour type," he added.
Currently, the firm manages 8,460 accounts totalling an estimated US$2.24 billion of assets under management.