Investment Decision Support
How will my assets develop under various volatile circumstances? What steps do I have to take to make my financial plan sustainable? Reliable information on risk, return and the probability of meeting future goals is essential when making financial decisions. Scenario analysis provides this information by visualizing how assets will most likely develop over time. It also demonstrates the impact of investment decisions, changes in a client’s financial situation and market developments.
High-quality scenarios lead to improved insight and subsequently to better investment decisions. To achieve the most realistic outcomes, the projections in OPAL incorporate inflation risk, currency risk and different investment strategies. Client-specific information such as (international) taxes and cost of services are also considered. Clear visual aids help clients and advisors better understand their options. Scenario analysis helps the client to decide if the risks taken are acceptable and enables the advisor to properly manage the client’s expectations.
OPAL platform is powered by the Ortec Finance Dynamic Scenario Generator. This stochastic projection engine generates real-world economic scenarios that reflect plausible future developments based on sophisticated analysis of historical behaviour. Benchmark selection is customizable resulting in scenarios that are fully in line with your firm’s investment strategy.
Real-world economic scenarios
- Correlations that vary in time and high correlations in tail events
- Increased volatility in market downturns
- Non-normal distributions
- Scenarios available for many asset classes and investment strategies
- Benchmark selection is customizable
- Possible integration of a company’s investment policy and expected returns
- Incorporation of inflation and currency risk
- International taxes and costs of services
- Investment strategies e.g. lifecycle or rebalance on client or product level
- ‘What if’ analysis help clients better understand their options
- Translating financial goals into an optimal investment portfolio
- Scenario analysis is considered best practice