Highlights the need for behavioural training of brokerage employees in a bid to enhance service levels and customer satisfaction

1. Fortuna Favi Et Fortus Ltd
-Partnership With Clients To Deliver Skill
Upgrades And Custom Training Interventions

2. Benefits Include:
Knowledge additions enhancing personal and organizational
growth including job relevance and preparation for added
responsibilities
Drive existing business whilst attracting new business with
effective sale and relationship building methods
Managing Relationships with your clients would be enhanced due
to the added clarity and understanding of your staff
 Lasting relationships based on knowledge, enhanced effectiveness,
communication, empathic skills and proper use of information
cannot but foster business growth.

3. Bias In Clients – Getting to know Your Clients
To know your clients and gain maximum wallet share there is a need to know what makes this
peculiar type of customers ‘tick’.i.e. – Brokerage clients
 What proportion of clients’‘wallet-share’is allocated to investing and
gaining it?
Clients cannot but have some level of bias – they are human and subject to myriad experiences
in the course of life, gathering a ‘nest-egg’ and come from diverse cultural backgrounds.
Staff need to Understand Bias and respond aptly in order to successfully manage investing
clients.
Bias are is manifested in various ways and needs to be recognized and handled effectively.
They can, and do interfere with clients’ willingness and ability to invest. Biases; Emotional or
Cognitive when revealed, require unique skill sets for appropriate recognition and
management in clients.

4. Investor Personality Types
Diverse clients have different personality types, that range from the idealist to the realist.
 How do you understand, manage working with clients in the relationship to
achieve set goal and objectives – both for the organization and individual
investing client?
We believe, the Dimensions of personality should be incorporated into individual investment
and lifetime planning process for clients. Facilitating a customized design.
• Idealism versus Pragmatism (I vs. P)
• Framing versus Integrating (F vs. N)
• Reflecting versus Realism (T vs. R)

5. Visual Depiction of Personality Dimensions
Idealism (I)
Framing (F)
Reflecting (T)
Pragmatism (P)
Realism (R)
Integrating (N)
Eight Possible Investor Personality Types. -: IFT, IFR, INT, INR, PFT, PFR, PNT and PNR.
 Can staff ‘really’hear and understand clients needs and unspoken
reservations?
 Are staff empowered to deal with the various personalities knowledgeably?

6. Framers may be susceptible to the
following biases: anchoring,
conservatism, mental accounting,
framing and ambiguity aversion.
Integrators are investors who are
typically not susceptible to the
aforementioned biases.
*Quite a few behavioral combinations
exist!
Framing Versus Integrating (F Vs. N)

7. Application Of Bias to Investing
High Level Of Wealth
(Adapt)
Emotional Bias
(Adapt)
Cognitive Bias
(Moderate)
Low Level Of Wealth
(moderate)
Moderate & Adapt
Moderate & Adapt
Adapt
Moderate
Source: Pompian, M. and Longo, J.

8. Investment Objectives
Consciously or subconsciously investor desires vary but each investor assigns
a different weight to each category. These categories:
-Safety/ security of Principal,
- Income
- Growth of Capital
- Liquidity (or marketability)
- Tax Minimization
- Targeted Investing
 Is the choice of investment products for clients applicable to the specific
life style and cycle?
 What is deduced from the questionnaires clients fill?

9. Investment Objectives
Client return and risk objectives must address the important issues:
• What ‘rate of return’is required to attain set goals?
• What risk is the client is ‘willing and able’to take to bear?
• What is the time horizon under consideration
Objectives should be stated clearly to allow for creation of a meaningful
investment policy, a specific return and risk objective.
Specific statements offer a much better range of investment options and
possibilities of success with goal attainment.

10. Tangible
Assets
Equity Assets –
stocks, mutual funds
and variable
annuities
Income Assets – Income funds,
fixed money annuities,
corporate, municipal and federal
bonds
Cash Reserves & Equivalents – Money,
Money accounts, Life insurance cash values,
regular savings- Certificates of deposit

11. Attitudes Toward Risk
The markets are constantly evolving with respect to
products, processes and delivery, whilst clients
request more by way of service delivery and
excellence.
 Who are likely clients?
 Where can they be found?
 What are their needs?
 What life cycle stage are they in?
 How do clients define risk? - as an income
shortfall, delayed retirement or less
wealth?
 When will be a convenient time to
approach clients?
Attitude Behaviour
(A two-way
street)

12. Rather than sell and realize losses, clients sometimes hold on
in the hope of a recovery, even if there is a chance that the loss
could become even bigger.
There is a need to measure the extent to which returns might or
does differ from the average or expected level of return.
 what are the chances of your clients set goals
being achieved?
 Objectivity with respect to the performance of
clients portfolio
Risk Aversion versus Risk Seeking (1)

13. Risk Return Relationship
Derivatives
Treasury Bills
Bonds
Preferred Shares
Debentures
Common Shares
ExpectedReturn
RiskLow
High
High
History reveals that the highest rates of return were achieved by securities that
had the greatest variability.
 Understand the product specific method of planning and implementation

14. Layout of the Investment Policy Statement
What do we know about our clients and how
would we use what we know about him/her in
the investment process?
Do we have an Investment Policy
Statement(IPS) and is it incorporated into client
financial plans?
Keys to the IPS:
• Client summary
• Investment objectives and constraints
• Portfolio restrictions
• Asset allocation and asset location
Investment
Policy
Statement
(IPS)
Agreements
Discovery

15. Layout of the Investment Policy Statement
• Investment philosophy (strategies and
style)
• Schedule for portfolio reviews
• Advisor-client agreement
 Intentionally Incorporate KYC
into the investment process to
customize investment solutions.
 Clients are unique in their needs
and their needs are important!
Investment
Policy
Statement
(IPS)
Agreements
Discovery

16. Asset Allocation: Accumulation Stage
There is an approach that bases asset accumulation on
the various stages in the clients life. There are four
accumulation stages:
• Seed-money formation stage
• Mid-life growth stage,
• Pre-retirement consolidation stage
• Retirement stage.
 Do you know your client well enough, to
pinpoint what stage they are in and
strategically structure asset allocations for
goal achievement?

17. Strategies to Investing
• Understand the markets.
• Recognize and seize opportunities for
wealth creation and management.
• Ensure prospects for long-term
growth.
• Communicate and manage clients
 Investing with a purpose today to
achieve future goals demands
knowledge of Clients, Products and
Markets.

18. Life Cycle Analysis
Add perspective to the process of achieving objectives and planning for your clients by
empowering employees to think in terms of the Life Cycle Planning for clients.
-Life Cycle Theory: belief that the risk-return relationship of a portfolio changes for clients
because clients have different needs at different points / stages in life.
-it is assumed younger clients can assume more risk in the pursuit of higher returns, that the
risk-return relationship reverses itself as the client ages. This is not so in all cases!
But what of the client retiring in a few years?
Studies indicate four definable stages in clients adult life.
•Early Earning Years – to age 35:
•Mid-Earning Years – to age 55
•Peak Earning Years:
•Retirement Years:

19. Apply the Financial Planning Pyramid
Art, IPOs, OTC
Securities, Real,
Estate, Precious
Metals
Tax Shelters,
Commodities –
Derivatives
Stocks, Mutual Funds,
Fixed-Income Securities,
e.g., Bonds – Debentures –
Preferred Shares, GICs
Debt Elimination, Home
Ownership– Registered Pensions –
Emergency Fund
Insurance & Will
Very Aggressive
Aggressive
Moderate
Conservative
Investment
Independence
Security
 Selection of the
appropriate financial
products to suit
specific life goals and
objectives is key to
successful investing
for clients!

20. Fortuna Favi et Fortus Ltd.,
:118 Old Ewu Road, Aviation Estate, Lagos,
: 07032530965 www.ffavifortus.com info@ffavifortus.com
Contact Our Training
Department For Knowledge
Interventions today!