This is because words mean different things to different people, particularly to those who do not have an in-depth understanding of the terms by which financial services professionals refer to things.
Mr Roxborough adds: "First and foremost, I would start with an example benchmark portfolio, examine the holdings and consider the volatility, past performance and potential risks of a portfolio."
Ascot Lloyd uses Distribution Technology's attitude to risk assessment, so the client can compare their thoughts and opinions to others with similar attitudes, and see how their personal portfolio compares with the model suggested.
"In terms of speaking with my clients, I prefer to think of volatility and capital risks as the main components here," he says.
simoney.kyriakou@ft.com
