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Overview
Enhance your risk profiling process with the Morningstar Risk Profiler, powered by the FinaMetrica Risk Tolerance Test, seamlessly integrated into your engagement workflow.
FinaMetrica is a market leader in risk profiling, providing a scientifically validated approach to assess client risk tolerance.
It helps you:
✔ Engage clients in meaningful discussions about their risk preferences.
✔ Identify an appropriate risk profile considering their experience, investment timeframes, and objectives.
✔ Build a strong compliance framework with a clear decision trail.
📌 Why Use It?
Backed by over 1.7 million risk assessments across 35+ countries.
Academically validated psychometric testing, ensuring accuracy and reliability.
Client-Friendly Process – The Risk Tolerance Questionnaire can be emailed for clients to complete at their convenience, allowing them time for thoughtful responses while improving adviser efficiency.
By leveraging the Morningstar Risk Profiler, you can confidently align client portfolios with their true risk tolerance, creating a robust investment strategy while maintaining compliance and documentation integrity.
Methodology
The Morningstar Risk Profiler – Powered by FinaMetrica is built on a scientifically validated methodology, continuously reviewed and refined to provide advisers and clients with confidence in risk assessment.
📌 A Robust and Evolving Approach:
✔ Backed by global research – Regularly enhanced using Morningstar's expertise in fund research, asset allocation, and portfolio construction.
✔ Academically validated – Ensures accuracy and reliability in determining client risk tolerance.
✔ Integrated with Morningstar Wealth Solutions – Connecting insights across Adviser Research Centre, AdviserLogic, and Managed Portfolios.
By leveraging Morningstar's comprehensive investment research and FinaMetrica’s proven risk assessment framework, the Risk Profiler provides a holistic and data-driven approach to client risk profiling, supporting more informed and tailored investment strategies.
Revised Strategic Asset Allocations – Effective July 1, 2024
How Does This Affect You?
✔ Applies to clients using the Default RTQ10 questionnaire – This update impacts the standard Morningstar Risk Profiler powered by FinaMetrica.
✔ No impact on Custom Asset Allocation – If you have set up a custom asset allocation, this change will not affect your clients' risk profiles.
📌 Want to Maintain Previous Risk Profile Values?
If you prefer to retain the previous Risk Profile values, please contact AdviserLogic Supportto set up a custom Asset Allocation tailored to your needs.
Getting Started
📌 Important Points to Know Before Switching On
✔ Replaces the Existing Risk Profile Page – Activating the Morningstar Risk Profiler will remove the previous AdviserLogic Risk Profile page in Fact Find 2.0.
✔ Original Risk Profile Name Remains – The client’s previously assigned risk profile name will still be visible, but the Morningstar Risk Tolerance Questionnaire (RTQ) must be completed to generate the new risk profile, asset weighting, and downloadable report.
✔ Results Align with Morningstar Risk Profiles – The new risk profiles and asset allocations will be based on the Morningstar Risk Profiler, not any custom risk profiles previously set up in AdviserLogic via Tools.
📌 Need to Keep Custom Asset Allocations?
If you prefer to retain a custom asset allocation, please contact AdviserLogic Support to configure it for your practice.
Switching on the Morningstar Risk Profiler - Powered by Finametrica
Accessing the Profiler Powered by Finametrica
To enable the Morningstar Risk Profiler go to Tools > Your Preferences > toggling Switch to Morningstar Risk Profiler (Powered by FinaMetrica) to ON. This will need to be done for each user in your practice.
Note
Switching on the Risk Profiler will remove the old Risk Profiler tool from the Fact Find and replace it with the new Morningstar Risk Profiler.
📌 What Happens to Existing Risk Profiles?
✔ Previous Risk Profile Remains Visible – If a client had a risk profile recorded in the AdviserLogic Risk Profiler, the system will still display the original profile.
✔ Completion of the New Questionnaire Required – To generate a new risk profile using the FinaMetrica methodology, the Morningstar Risk Tolerance Questionnaire must be completed.
📌 Next Steps:
Review the existing profile to see previously assigned risk levels.
Complete the new questionnaire to update the profile with FinaMetrica’s validated methodology.
Download the updated report for client records and compliance.
This ensures a seamless transition while maintaining historical data visibility.
Client with previously generated AdviserLogic Risk Profile
If a client had no risk profile entered in the AdviserLogic Risk Profiler, the screen will appear as below.
Using the Risk Profiler
There are two ways to use the Risk Profiler in AdviserLogic.
Client Driven Questionnaire - You can easily send a link to the Risk Tolerance test to a client via email. The client can then complete the test at their convenience
Adviser Facilitated Questionnaire - Advisers can complete the Risk Tolerance questionnaire during the client meeting, and the client’s responses are recorded directly in AdviserLogic. The questionnaire is accessed from within the client record in AdviserLogic.
Regardless of the approach taken, the Risk Tolerance Score from the Morningstar Risk Profiler Powered by FinaMetrica will be automatically imported into AdviserLogic.
From this point, you can engage in a discussion with the client to review and adjust the score or risk profile to better reflect their individual circumstances.
The client's responses suggested Risk Tolerance Score and agreed-upon Risk Profile will be compiled into a detailed report, which can be downloaded from AdviserLogic for compliance and client records.
This process ensures transparent decision-making and supports personalised investment recommendations based on both objective scoring and adviser discretion.
Completing the Questionnaire
To complete the questionnaire, from a client record navigate to Fact Find > Financial > Risk Profile.
Select New Questionaire.
Choose:
Allows the client to complete the questionnaire on their own | |
Allows you to complete the questionnaire with the client. |
Sending the Risk Tolerance Questionnaire to the Client
To send the Risk Tolerance Questionnaire (RTQ) directly to the client for completion, select "Send RTQ to Client." A dialogue box will appear, prompting you to enter the client’s email address. If the preferred email address is already recorded in Fact Find, it will be auto-filled, but you can edit or update it as needed before sending.
The client will receive an email with a link to complete the Risk Tolerance Questionnaire (RTQ), which consists of 10 questions. They can complete it at their convenience, allowing them time to carefully consider their responses.
You will receive an email notification once the client submits their Risk Tolerance Questionnaire (RTQ) responses. At this point, the results will be available for review and discussion, allowing you to assess the client's risk profile and reach an agreed-upon outcome.
Within the Risk Profile section of the Fact Find, the Morningstar Risk Profile page will display the message Risk Profile is Incomplete. The profile status will update to In Review, and the button will change to Review. To proceed, select Review and then Start Questionnaire to begin the assessment.
The tool will load the completed questionnaire, allowing you to view and discuss the client's responses. To proceed, scroll to the end of the questionnaire and select Next to review the results.
📢 Important Note
The client's risk profile is suggested based on FinaMetrica’s risk tolerance methodology. Currently, a fixed long-term horizon of 20 years is applied to the calculation. In the future, we plan to introduce the ability to customise the time horizon for each objective, allowing risk profiles to be set at an objective level for more tailored financial planning.
Once the clients' responses have been reviewed and submitted, the tool will show where they sit in the range of potential outcomes.
You can use the Risk Profile tool to update a custom Risk Score as needed, depending on the outcome of the client conversation.
Once the reviewed risk profile has been submitted you can adjust the risk profile by selecting the pencil icon next to Agreed Profile and amending it.
📌 Note
Always download and save the report to the Doc Vault before updating a new risk profile. Completing a new questionnaire will override the previous risk profile information.
These tools can also help you address inconsistencies in the client's responses.
The results and comments will be reflected in the File Notes and the interface.
The client's super risk profile will automatically default to the individual, however, the same approach can be taken to adjust the Super risk profile if required.
Once the risk profile has been set, we recommend downloading the report and saving it to the Document Vault to ensure it is kept on record for compliance and future reference.
Completing the Questionnaire with Client
To complete the risk profiling exercise with the client, access the questionnaire from the client record, and go to Fact Find > Financial > Risk Profile > Select New Questionnaire > Start Questionnaire.
A new tab will open. Complete the 10 questions, discussing each item with the client. At the end of the questionnaire, select Next to review the results.
Once the clients' responses have been reviewed, the tool will show where they sit in the range of potential outcomes.
📢 Important Note
The client's risk profile is suggested based on FinaMetrica’s risk tolerance methodology. Currently, a fixed long-term horizon of 20 years is applied to the calculation. In the future, we plan to introduce the ability to customise the time horizon for each objective, allowing risk profiles to be set at an objective level for more tailored financial planning.
The tools allow you to update a custom Risk Score if required, based on the outcome of the client conversation, and can also be used to address any inconsistencies in the client’s responses.
Once Submit is selected, the outcomes will load on the risk profile dashboard for both the client’s general risk profile and their superannuation risk profile.
Once the reviewed risk profile has been submitted you can adjust the risk profile by selecting the pencil icon next to Agreed Profile and amending it.
These tools can also help you address inconsistencies in the client's responses.
📌 Note
Always download and save the report to the Doc Vault before updating a new risk profile. Completing a new questionnaire will override the previous risk profile information.
The results and comments will be reflected in the File Notes and the interface.
The client's super risk profile will automatically default to the individual, however, the same approach can be taken to adjust the Super risk profile if required.
Once the profile has been set, we recommend downloading the report and saving it to the Document Vault to ensure this is kept on record.
Reporting on the Risk Profile
Always download and save the report to the doc vault before updating a new risk profile. A new questionnaire will override the old risk profile information.
Download PDF Report The risk profile report can be downloaded in PDF format.
This report will be downloaded to your local folder and then you can upload it to the Document Vault.
FAQ
What happens to my existing Risk Profiles?
What happens to my existing Risk Profiles?
Once the new Morningstar Risk Profiler is switched on, the old Risk Profile page is hidden. The Risk Profile name that was assigned to the client will be visible, but you will now need to complete the FinaMetrica risk tolerance questionnaire to obtain the new risk profile (based on the Morningstar Risk Profiles and Asset Allocation weightings.)
Will separate emails be sent to the client and partner if I choose to send questionnaires to different entities?
Will separate emails be sent to the client and partner if I choose to send questionnaires to different entities?
Yes, as each risk tolerance assessment is unique to the individual, each partner will be sent a separate email to support their individual questionnaire. If the same email address is recorded against both partners, both emails will go to the same address and the clients will need to take care to answer the correct questionnaire.
Will previously filled-out Risk Tolerance Questionnaires’ data pre-populate into the new Risk Profiler?
Will previously filled-out Risk Tolerance Questionnaires’ data pre-populate into the new Risk Profiler?
No – As the Risk Tolerance Questionnaire will be changed, the individual responses in the old questionnaire will no longer be available. We encourage users who wish to retain file notes of these responses to delay taking up this feature until we can support this via an automated process.
Will a superannuation profile be suggested even if a client does not have superannuation holdings?
Will a superannuation profile be suggested even if a client does not have superannuation holdings?
The system will, by default, suggest a risk profile for superannuation holdings for the client, irrespective of whether they have superannuation or pension investments recorded in AdviserLogic. The profile will default to the same profile as the client’s non-super holdings so will not need to be addressed separately if it is inapplicable or consistent with the non-super profile.
Are custom risk profiles part of this implementation?
Are custom risk profiles part of this implementation?
Risk profiles that do not align with the Morningstar Risk Profiles will not form part of the initial implementation. Work is currently underway to support the mapping of outcomes of the FinaMetrica Risk Tolerance Questionnaire to custom risk profiles and to support the transition of custom profiles to the new Morningstar Risk Profiler interface. For now, to customise the FinaMetrica profile name and/or asset allocation weighting, please contact our support team.
I am an existing FinaMetrica user, can I transition to the new user experience as part of this implementation?
I am an existing FinaMetrica user, can I transition to the new user experience as part of this implementation?
Existing FinaMetrica users are not encouraged to migrate to the new experience yet, as the process to migrate historical data in FinaMetrica’s Toolkit is still being developed and the RTQ-25 is not currently available. When this is available (expected later in 2023) we will support users to transition to this new capability when convenient for them. In the meantime, FinaMetrica’s existing functionality will continue to be supported through AdviserLogic.
What happens when I cancel my FinaMetrica Toolkit account?
What happens when I cancel my FinaMetrica Toolkit account?
When you choose to cancel your FinaMetrica Toolkit account, you will no longer have access to www.finametrica.com This means you'll lose access to your existing client list, and all exported data from FinaMetrica.com cannot be imported into ADL; no functionality currently exists.
What are the subscription notes for FinaMetrica Toolkit?
What are the subscription notes for FinaMetrica Toolkit?
There are two types of subscriptions for the FinaMetrica Toolkit:
Annual subscriptions: These are billed by MAPL directly and are non-refundable. If you want to cancel your annual subscription, it is recommended to do so closer to your subscription expiry to make the most of your prepaid subscription.
FinaMetrica Add-On Subscriptions: These subscriptions must be linked to an ADL subscription and are billed monthly. If you choose to cancel, future payments for these subscriptions can be stopped.
Can I modify the questions in the Risk Tolerance Questionnaire?
Can I modify the questions in the Risk Tolerance Questionnaire?
No – the questions and scoring outcomes of the questionnaire are based on extensive research and methodology that forms the core aspect of FinaMetrica’s value in the advice process. While the scores from the questionnaire can be mapped to custom risk profiles that reflect a specific exposure to growth assets, the questions and scoring itself cannot be changed.
Is there a charge for using this tool?
Is there a charge for using this tool?
Access to the 10 question Risk Tolerance Questionnaire (RTQ-10) is free of charge. Users who are interested will be able to access the 25-question Risk Tolerance Questionnaire at an additional cost when this is released.
Is there a feature to create risk profiling for other entities (e.g.: Trust, SMSF, etc.)?
Is there a feature to create risk profiling for other entities (e.g.: Trust, SMSF, etc.)?
The questionnaire is currently designed to cater to individuals. The individual risk profile will automatically also apply to a client’s super, however, this can be changed to reflect a different timeframe to other investments if appropriate. Entity (Trust, Company, SMSF) risk profiles are not currently supported by FinaMetrica.
How does this risk profiling method affect other dependencies (e.g.: Digital Advice, Cashflow, Database Segmentation etc) for Asset allocation?
How does this risk profiling method affect other dependencies (e.g.: Digital Advice, Cashflow, Database Segmentation etc) for Asset allocation?
The client’s risk profile is input to analysis in many other modules within AdviserLogic, including Cashflow, Digital Advice, Client Wealth Portal, Fact Find, and Reports. Where the risk profile is determined through FinaMetrica, this will flow to other modules with assumptions and configurations associated with that risk profile being adopted throughout AdviserLogic.