Blue Chip Issue 86

The six personality archetypes and the two broader groups they are separated into.
want to feel that they are in control of making their own decisions,
using you (the financial planner) as their sounding board.
• Communicate the importance of using an advisor as an expert
“sounding board” and to execute decisions effectively.
Credit: Nedbank
The key to communicating with “jumpy” clients
When it comes to engaging with clients who fall into the lowcomposure
group of personalities (sensitive, skittish, stressed),
there are a few practical tools that can make all the difference:
• First of all, it’s crucial as the financial planner or advisor to model
a sense of calm and not feed into the client’s anxiety or unease.
• Keep information presented to them simple and use infographicstyle
material rather than overwhelming graphs and charts. We
use a collection of engaging, simple sketches by Carl Richards
which illustrate the true value an advisor can play here.
• Avoid showing them new graphs and charts at this stage as they
are likely to find it overwhelming. Unless you have shown the
client a particular chart at the inception of your relationship, it is
probably best to wait until markets are more stable to introduce
new information.
The key to communicating with “calm” clients
Clients who have the highest composure will likely only feel
comfortable with a decision if they feel that they have done all the
research themselves. If you want to support their decision-making
process, it needs to be done subtly, by improving the decisionmaking
environment, rather than being prescriptive or reducing
their freedom to choose. Anything that feels like intervention or
assistance risks alienating them.
Practically, when communicating with this group of clients the
below guidelines may be useful:
• Empower the client to make informed decisions. Nedgroup
Investments has tools on its website like The Big Picture App to
allow the client to explore all the possible options. For clients at
or close to retirement, platforms such as MRS will also be very
useful here.
Knowing which personality group your client(s) fall into
Identifying a low-composure client or a high-composure client can
be as simple as asking them how they feel about a story about
a client whose portfolio dropped from R1-million to R600k in
less than three months during the 2020 Covid-19 crisis. A lowcomposure
client will show (extreme) discomfort, while a highcomposure
client will appear relatively unaffected and may simply
respond with a “that’s markets for you!”.
The Nedgroup Investments Financial Personality Survey,
conducted in partnership with Oxford Risk, assessed over 3 000
South African investors and advisors against 12 defined personality
traits that have been known to affect behaviour. One of the key
findings in the South African study was that there are multiple
dimensions to risk attributes when it comes to investing for South
African investors.
Amy Jansen, Head of Behavioural Solutions, Nedgroup Investments,
and Seugnet de Villiers, Investment Analyst, Nedgroup
Investments MultiManager
www.bluechipdigital.co.za
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