Advisers told to manage client behaviour

There are calls for advisers to be given more education about managing investor behaviour and expectations to boost their investment returns.

Industry commentator David Whyte, of DCW Management, said behavioural factors were becoming a much more significant consideration in the work of financial planners around the world.

Hugh Massie, of DNA Behavior International, said although investor behaviour – such as getting spooked and selling during a downturn – could cost them returns, the focus should be on equipping advisers to manage that behaviour, not educating investors themselves.

He said the investors were never going to understand market dynamics in volatile circumstances or the complexities of different products.