I think that one of the key challenges is associated with what earlier we mentioned as being the big three. So this is really a process about having a set of capital market assumptions that is robust and thorough enough. What I mean by that is having the technology and knowledge, so human capital knowledge as well, that allows us to have a system to identify the expected return for the different asset class into the future.

So what are we, what are the returns that we are foreseeing for different assets in different markets, in different regions, and possibly also different factors? What is the level of risk associated with that? So what is the level of uncertainty and volatility for all of these assets and the level of correlations? And these things can be very time varying, they can change depending on different market environments, so it can be very difficult for investors to have an idea and a clear view of what those might be. Of course, there is no perfect predictability on any of that, but even just having an idea of having a sense and a set of clear expectations that are consistent with the investment objective as well is not an easy task. Associated with that is, of course, the process with keeping track of the performance of the portfolio and if anything, having a system in place that allows an investor to make changes to the portfolios that might be necessary, either because the investment objective has slightly changed or maybe because we are in a market environment that is a little bit different to what we were expecting and does require at least a discussion on whether the portfolio should be changed or not.

The research that we have been doing at Vanguard over the past 15 years actually suggests that advisors are keen on outsourcing the process of building an optimised portfolio and really not spending too much time with topics associated with how we can best construct the allocation, the asset allocation around the multi-asset portfolio. That is because saving time in doing that allows them to have more time for their clients to focus on aspects and topics that they have more direct control and that they can add more value.

So topics like having a more holistic approach to financial planning, so that could be financial education, behavioural coaching, any aspect associated for instance with tax optimisation or thinking about legacy wealth. So all aspects that are more specific to the investors that are not necessarily associated with the portfolio construction process as a whole, where investors have an edge over other providers like asset managers in order to deliver better outcomes for their clients.

Portfolio analysis can add a lot of value to an investor in order to identify any unintentional tilt or exposure that they might have in their portfolio. So that could relate to hyper concentration or concentration or exposure to certain factors or regions or type of assets that are not that they are not necessarily aware of. So that could be, for instance, an overweighting to tech stocks or specific regions because of an home bias that could be intentional and it could be part of the investment process and objective identified with the advisors, but it might not.

So portfolio analysis really tries to unpack all of that and to make explicit to some extent the implicit and making sure that an investor has a clear view on what the exposures and risk exposures in particular they're having with the portfolio. That process can lead to reconsidering the asset allocation with their advisors and therefore that portfolio analysis can lead to changes in the asset allocations, again, harvesting the diversification benefits that we talked about or making any changes that that might be more consistent with the objective goal that the investors, the investor have. And that process of just discussing, going through the analysis of the portfolios, being aware of what they were not necessarily aware of or what could be intentional or unintentional actually creates an element of trust between the advisor and the client that has benefits that go beyond also the portfolio construction process.