Economist slams 'rubbish' risk profiling by advisers

Speaking at Baillie Gifford's investment conference in Edinburgh last week, Professor John Kay, the founder of the Institute of Fiscal Studies, suggested the models were used to justify decisions already made on other grounds. Kay, who is currently a director of the Scottish Mortgage investment trust at Baillie Gifford, also dismissed the idea risk aversion could be calculated through a series of questions, the Herald Scotland reports. He added: "I am not against using these kinds of models as illustrative calculations; what has gone wrong is people believing that they provide an assu...