[MUSIC] Hello, my name is Carolina Moura-Alves and I work for UBS Wealth Management. I am the head of fixed income strategies. Today I would like to talk to you about the path our investors take from their profile to their optimal investment strategy. As wealth managers one of our main challenges to find the right investment strategy for each and every one of our clients. This is not an easy task, since our clients are typically individuals rather than companies and all unique in their own way. Furthermore, we humans suffer from wild documented behavioral biases when it comes to investing. Herding, tendency to follow the crowd, overconfidence, tendency to overestimate our own investment skill, and the list goes on. Now how does UBS tackle the challenge of finding the right investment strategy? Well, we take a highly systematic approach to gain in depth understanding of our clients. We start by determining their risk profile and then by recommending what we believe to be the optimal investment strategy. In other words, we initially spend time knowing our clients, asking them questions, running them through an investment scenario in order to determine their risk profile. For example, we will try to establish their loss ability, how much can the client afford to lose in an investment? Their loss tolerance, how much loss can the client cope with emotionally? The attitude to risk, is the client a risk taker? Is the client not a risk taker? The result of our analysis will be one of possible six risk profiles, which span from a very conservative to an aggressive risk profile. For each of these risk profiles, there will be a corresponding optimal investment strategy or portfolio. Specifically, conservative profile will have a higher allocation to Bonds. An aggressive risk profile we will have higher allocation to equities. One important point though to remember is that all the optimal portfolio will be highly diversified across asset classes such as bonds, equity and hedge funds. This is because one core beliefs when it comes to investing is that the only free lunch in finance is diversification. What we mean is investors are definitely better off investing in portfolios which do not put all eggs in the same basket. I hope I've showed you how we guide our clients in the path from an investor profile to his or her optimal investment strategy. Thank you for listening. [MUSIC]