INA $708$: Behavioural Finance

Presentation Ou

INA $708$: Behavioural Finance

Presentation Outline $(10\%$; see grading Rubric$)$

Written Report due at time of Presentation $(10\%$; see below$)$

Work in groups of $3-4,$ you are a Financial Planner. You have just inherited a client from a retired advisor. You have

already spoken over the phone and exchanged emails prior to this meeting. The client has provided you with a

completed risk tolerance questionnaire and an existing portfolio.

You are now meeting for the first time. You must:

a$)$ Review the results of the risk tolerance questionnaire $($completed questionnaire to be submitted$)$

b$)$ Review his$/$her existing portfolio $($to be submitted$)$

BREAK $$ can switch roles here

c$)($Second meeting$)$ Make suggested changes$/$recommendations to the existing portfolio and present proposed

portfolio $($to be submitted$)$

Remember to actively listen to your client, ask questions, and determine at least $6$ of their biases $(3$ cognitive and $3$

emotional$).$ These biases must be easily identifiable from your questions$/$answers received. Your portfolio allocations$/$

recommendations must account for these biases where possible, and this must be explained in your written report.

Your entire presentation must be $1520$ minutes long. You can $$break$$ between b$)$ and c$)$ as this is normally done in

two meetings. You can choose to switch roles $($client and advisor$).$

Plan carefully so you have enough time!

The written component of your submission $(10\%)$: In $7$ pages or less, double spaced, not including exhibits$/$

attachments $($RTQ$,$ FNA and current and proposed portfolios$).$ It must include:

$1)$ Fact Sheet: Short summary client summary, supported by completed RTQ and existing portfolio exhibits.

Documentation including risk tolerance questionnaire and current portfolio, and client notes taken during your

$$first meeting$.$

$2)$ Client Notes: Key information collected, both personal and financial $($current holdings$),$ FNA form is suggested.

Include at least $6$ key questions and client answers.

$3)$ Key Findings: prepared aftline $(10\%$; see grading Rubric$)$

Written Report due at time of Presentation $(10\%$; see below$)$

Work in groups of $3-4,$ you are a Financial Planner. You have just inherited a client from a retired advisor. You have

already spoken over the phone and exchanged emails prior to this meeting. The client has provided you with a

completed risk tolerance questionnaire and an existing portfolio.

You are now meeting for the first time. You must:

a$)$ Review the results of the risk tolerance questionnaire $($completed questionnaire to be submitted$)$

b$)$ Review his$/$her existing portfolio $($to be submitted$)$

BREAK $$ can switch roles here

c$)($Second meeting$)$ Make suggested changes$/$recommendations to the existing portfolio and present proposed

portfolio $($to be submitted$)$

Remember to actively listen to your client, ask questions, and determine at least $6$ of their biases $(3$ cognitive and $3$

emotional$).$ These biases must be easily identifiable from your questions$/$answers received. Your portfolio allocations$/$

recommendations must account for these biases where possible, and this must be explained in your written report.

Your entire presentation must be $1520$ minutes long. You can $$break$$ between b$)$ and c$)$ as this is normally done in

two meetings. You can choose to switch roles $($client and advisor$).$

Plan carefully so you have enough time!

The written component of your submission $(10\%)$: In $7$ pages or less, double spaced, not including exhibits$/$

attachments $($RTQ$,$ FNA and current and proposed portfolios$).$ It must include:

$1)$ Fact Sheet: Short summary client summary, supported by completed RTQ and existing portfolio exhibits.

Documentation including risk tolerance questionnaire and current portfolio, and client notes taken during your

$$first meeting$.$

$2)$ Client Notes: Key information collected, both personal and financial $($current holdings$),$ FNA form is suggested.

Include at least $6$ key questions and client answers.

$3)$ Key Findings: prepared after analyzing about your client$$s responses to your questions.

a$.$ Identify active or passive traits

b$.$ Explain the six biases which were identified $$ you must indicate how you determined this.

c$.$ Identify your client$$s BIT $($behavioural investment type$).$

d$.$ Discuss the impact these findings had on your recommendations

$4)$ Your Recommendations: include an appropriately behaviourally modified portfolio asset allocation, reasoning,

advice given to client, etc. Are you adapting to biases or moderating their impacts? Explain.

Remember your written submission should include clear identification and explanation of at least six biases

uncovered in your first meeting and how you addressed these in your second client meeting and in your

recommended portfolio asset allocations.

NOTE: all written submissions MUST be submitted online BEFORE your presentation. You must also use PPT for

your audience to see your client$$s completed RTQ questionnaire and existing vs proposed portfolio allocations.

HAVE FUN!