Back in 1986, Brinson, Hood, and Beebower (BHB) shocked the investment world by studying ninety-one large
U.S. pension plans and concluding that asset allocation had the greatest impact on variability of returns.
Investor behaviour determines investment returns. The emergence of behavioural coaching as a key value-add from financial planners is a direct response to the potential that investors may sabotage their own outcomes.
We are living in a changing world, and the jury is still out on the full impact of technological transformation on financial advice. Increasingly, the question will be asked by consumers: Do I need to consult a human financial adviser when an AI model could be my adviser?
