7IM announces partnership with Behavioural Finance specialists, Oxford Risk

August 10, 2022


Globally recognised expert in applied decision science, behavioural finance, and financial wellbeing, as well as a specialist in both the theory and practice of risk profiling. He started the banking world’s first behavioural finance team as Head of Behavioural-Quant Finance at Barclays, which he built and led for a decade from 2006.

7IM announces partnership with Behavioural Finance specialists, Oxford Risk

Investment management specialists, 7IM have partnered with behavioural finance pioneers, Oxford Risk to support growing demand amongst advisers and wealth managers for risk-mapped funds and portfolios.

Financial advisers who use Oxford Risk’s innovative ‘Investor Compass’ solution can now access 7IM’s model portfolios and funds via the firm’s innovative end-to-end risk profiling and suitability solution.

Model portfolios rated by Oxford Risk include 7IM’s Responsible Choice, Active, Blended and Passive ranges. Oxford Risk has also rated 7IM’s funds, including its Pathbuilder, AAP, and Multi-Manager ranges, as well as the Sustainable Balance Fund, and Personal Injury Fund.

Oxford Risk uses a unique methodology, built on advanced behavioural finance techniques to determine the suitable risk level for each investor. This supports financial advisers in identifying an investor’s willingness and ability – both financial and emotional – to take risk. Oxford Risk’s risk-mapping solution identifies the realistic returns for each risk level in combination with the emotional reactions that an investor is likely to experience to any potential losses.

Their portfolio rating assesses the long-term prospects of investments based on extensive historical asset data but without assuming the future will replicate the past, and includes the potential for momentum and mean-reversion, the absence of which could affect the projections.

This unique approach issues financial advisers and wealth managers with a much deeper understanding of their client’s financial and emotional needs, therefore helping to align them to the most appropriate vehicle for investment.

Verona Kenny, Managing Director at 7IM Intermediary commented on the partnership, saying: “We are delighted to be working with Oxford Risk, many advisers use its Investor Compass risk tool and fed back that adding its risk ratings on our models and funds would be hugely helpful.

The way in which Oxford Risk puts an emphasis on the behaviour of the client to complement the financial statistics to them create a risk profile resonates with our own values that put clients and their needs first.

Oxford Risk’s Head of Behavioural Finance, Dr Greg Davies also had this to add: “We are delighted to be able to provide risk ratings on 7IM’s funds and model portfolios. We know that many advisers that use 7IM also use our Investor Compass, so it made perfect sense to partner with the firm.

One of the unique elements of our process is our focus on understand the behaviour of clients when it comes to risk and returns, something which 7IM identified as aligned to its own views on helping advisers make more appropriate decisions for their clients.

For more information about Oxford Risk and 7IM's partnership, or to find out more about Oxford Risk's Investor Compass solution for wealth managers, please email contact@oxfordrisk.com.

Download our Risk Mapping Solutions brochure

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