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Risk profile tests - Is there a gap between stated and actual risk appetite?

Regardless of the mode of advisory or investment, an examination of risk profiling tools is long overdue

CLAIMS to sustainability have become commonplace in Singapore's fund management, distribution and advisory landscape. But a recent piece of research raises some intriguing questions, with wider implications beyond sustainable funds.

Capital Preferences, a firm specialising in profiling tools to help advisers better understand and guide their clients, has found in recent research that there is a significant gap between intention and action in the growing sustainable investment market. It found that 3 out of 4 investors were not confident that their current portfolios were aligned to their environmental, social and governance (ESG) values.

While the study is interesting in itself, it raises a wider...

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