Although I’m a fairly recent appointee to Profile, I have shared the same philosophy of “Objectives-Based Investing” for well over a decade now! I thought it was worth revisiting what this approach means for clients and why it’s important in our current challenging investment environment.
What is Objectives-Based Investing?
Objectives-Based Investing (OBI for short) is an investment approach that seeks to align investments and portfolios with the specific objectives of the individual investor. This is very much unlike common industry practice, which typically just matches products to a client’s risk profile (that is, their preferred level of volatility).
Why is it important?
OBI recognises that individuals are unique, with needs and objectives that are equally unique and generally more complex than a preferred level of risk alone.
In our experience, not only do clients have several objectives and needs at any one time, but those goals also tend to change over time. Clients want and need investment portfolios and Read more