Mr Webb agrees that outcomes-based investing is a complex issue, made even more so by the fact that risk means different things to different people.
This is where the advice sector, and financial advisers, can play a crucial role.
He notes: “That’s something that bodes well for the advice sector in particular because that’s where they really can significantly add value in terms of educating and creating the right investment strategies for the end investor.”
So outcomes-based investing will require advisers and investors to adapt to a world in which people are living longer and seeking both capital growth and income into retirement age.
Ellie Duncan is deputy features editor at Investment Adviser
Key facts
• Investing for outcomes takes into account an investor’s goals, risk tolerance and time horizons
• The Retail Distribution Review and pensions reforms are the main drivers behind the growing move to an outcomes-based approach to investing
• ‘Capital accumulation’, ‘preservation’, ‘income’ and ‘inflation protection’ are four key outcomes that investors may identify, according to Nigel Whittingham of Square Mile Investment Consulting & Research
