IntermediateBEHAVIORAL
Describe a time when you had to rebuild trust with a client after a portfolio underperformed; what steps did you take to communicate, adjust the strategy, and retain the client?
Financial Advisor
General

Sample Answer

Last year a long-standing client saw a 12% drawdown in a concentrated equity sleeve during a sector downturn and called visibly upset. I scheduled a same-week video call, walked through the performance drivers with clear charts, acknowledged where my positioning missed the macro shift, and shared a quantified recovery plan: move 30% of that sleeve into diversified ETFs, trim the top 3 positions to cap single-stock exposure at 8%, and add a 10% cash buffer to deploy on re-entry. Over the next six months we recovered 7% and the client stayed. I sent monthly P&L summaries and one-page trade rationales so they always knew why I acted, which repaired confidence quickly.

Keywords

Immediate, transparent communication with data-backed explanationsSpecific rebalancing actions with percentages and timeframesOngoing reporting cadence to rebuild confidence
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