The new tool in its K4 lineup combines utility theory, behavioral finance, and conjoint analysis to better understand investors and improve the model portfolio selection process, the company said in its press release. The tool intends to address the middle ground of the 401(k) investor market between age-based or questionnaire-based tools and complex financial planning tools.
Assessing investor risk tolerance and investment preferences, K4 Portfolios produces a personalized assessment of available model portfolios which can then be integrated with a firm’s administrative or transaction platforms for immediate implementation. The company also said in the release that the application is branded to suit the specific audience and available portfolios of the financial services firm.
In addition, the company said K4 Portfolios can be used to enhance suitability processes, proposal systems, and asset allocation and financial planning tools.
A demonstration of K4 Portfolios is available at www.kleindecisions.com/demo.htm , along with a demonstration of K4 Investments, a tool for selection and monitoring of investment products including mutual funds and money managers.