Wealth managers across Europe have admitted to being surprised by the investment decisions of their clients, a study by behavioural finance experts Oxford Risk suggests.

According to a survey of wealth managers in the UK, France, Italy, Spain and Ireland responsible for €328bn in assets, around seven in ten (68%) admit they are surprised by the decisions their clients make.

This is despite the research also showing that 80% of wealth managers surveyed claim they have a very good understanding of their clients’ psychological profiles when it comes to investments.

Nearly two-thirds (62%) of respondents believe emotional decision-making costs the average investor over 100 basis points of investable wealth each year.

Meanwhile, 82% of wealth managers stated they have good tools and systems in place to understand their clients’ psychological profiles, compared to 4% who do not.

Those who said they have sufficient training to understand their clients’ psychological profiles amount to 74% of respondents. However, when asked how they assess their clients’ psychological profiles, 67% rely mainly on their own intuition.

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