Prudential is rolling out innovative new software later this week to help IFAs better assess the risk profile of their clients, and create investment portfolios on the back of it.
Called Prudential Portfolio Planner, the stochastic modelling software allows advisers to input the client’s existing investments – purely for aggregation purposes – and then assess their attitude to risk as well as any additional requirements which might need to be met.
In particular, risk profiling takes a new direction by specifically asking six questions – condensed from around 20 that might usually be asked – to determine whether clients would be better served in conservative, balanced, managed or aggressive funds rather than asking a client to rate their risk from 1-10.
Tools which calculate how assets should be allocated also have the ability to calculate the equity and bonds make-up of funds where funds are mixed, to ensure the risk ratio is not blown and too much money is placed in equities, for example, when the client may hold a conservative risk profile.
Darragh Leeson, a spokesman for Prudential, says the software is not interested in who products are invested with, but where the assets are allocated, as PruIFA believes this is a good customer relationship-building opportunity.
Once the asset allocation process is completed, software then provides investors with a realistic expectation of the returns they might expect under their investment time scale and attitude to risk.
As a result of requests from IFAs, Prudential has also opened the investment option of its tools – which can be used on their own, for free, without buying Prudential investments – to externally-linked multi-manager funds, all of which are currently placed in the top quartile of investment funds.
Moreover, Prudential has also included regular premium investments – an option which would not usually give its investors.
IFAs can also generate word documents from the raw data of the client’s answers, and maintain a complete audit trail for both the risk profiling and investment selection process.
Click on the Prudential Portfolio Planner link to view a flash demo of the software.IFAonline
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