Wealth Plan

It is a sophisticated tool that allows financial consultant to analyze customer risk profile and design a planning for financial investments and pension plan, comprehensive of all customer assets, plus on-going monitoring of risk and performance indicators.

1. Powerful calculation engine

Our calculation engine can process in real time complex historical data matrixes and can be integrated with external engines for specific computations. It is possible to calculate the risk – performance ratio for any portfolio, to be graphically represented with Efficient Frontier graph according to Markowitz theory, and calculate optimization of the curve according to Black-Litterman method. We can also calculate several risk indicators for any portfolio, such as: volatility, duration, beta, VaR (Value at Risk) and integrate with others calculated externally.

For the pension plan component,  our engine allows to maximize tax benefits for customer, by proposing a mix of products that can satisfy any insurance / pension requirement, such as: generate a cash flow over a predefined period, generate an end of period capital, long term care, etc.

2. Customer requirements analysis

Analysis of customer requirements and necessary investments is executed using a component usually integrated with Institution core system. We merge current investment positions with requirements expressed via configurable questionnaire, to execute detailed analysis of the financial assets, pension assets and provisional cash flows, to produce a comprehensive proposal to be submitted to the customer.

Wealth Plan component allows to supervise entire life cycle of customer investment assets, monitoring over time both performance indicators and level of target attainment, across four phases:

  • Financial planning
  • Pension planning
  • Relationship manager Agenda & Cash flow management
  • Monitoring

3. Financial Planning

Assess risk profile of customer, through questionnaire. Proposition of benchmark (model) investment portfolio, verification of variability cone and comparison with related benchmark. Calculation of “efficient frontier” curve, with time forecast according to hypothetical scenarios on the different industry sectors (bullish, bearish, neutral), processed according to Black-Litterman method.

4. Pension Planning

Identify pension planning targets at a reference age. Automatic calculation of pension revenues from obligatory system (first pillar) through certified algorithms.  Addition of several private pension schemas and calculation of fiscal benefits on pension products already owned. Calculation of a comprehensive and customized pension plan.

5. Relationship manager Agenda & Cash Flow Management

Relationship manager agenda and management of appointments. Management of active & passive Cash Flows, as deriving from financial investments, pension schemas, commercial strategies. Evidence of positive and negative peaks, alarms, levels. Estimation of running debt, through calculation of Net Present Value.

6. Monitoring

Verification of portfolio historical past value, in the perspective of the variability cones. Comparison of evolution of real portfolio versus benchmark (model) portfolio. What-if analysis, simulation of actions that affect the portfolio.

Wealth Plan is developed in Java (J2EE platform), as a 3 tier application and can be used in multi-channel environment. It is available for the most common RDBMS. It can be installed in “light” version for branch agents (retail customers), Financial Promoters, or in “full” version for customer relationship manager and financial consultants (affluent customers) or in “enhanced” version for Private Bankers.