Conceptual framework demonstrates enhanced advisor-client relationships across wealth management, suggesting the need to modernize client reporting and regulatory mindsets.
Balancing the desire for gains with the aversion for losses in the goal-based investment approach constitutes the innovation of the Global Goal-Based Investment (GGBI) framework. The GGBI extension enlarges the set of investment objectives according to their emotional intensity and brings the notion of loss aversion into the advisory process. We show that this new feature potentially enhances the quality of the relationship with wealth management clients in the onboarding, monitoring, and subsequent reporting phases. Our specific framework allows to navigate the investing client based on her own goals and speak her own language, suited even for one who is less financially literate. While this could represent a business opportunity for investment companies, such goal-based approach would require a rethinking of the client interactions and client reporting, as well as the regulatory mindset in many jurisdictions.
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Hübner et al. (2026) studied this question.
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