Distribution Technology has added tools to its Dynamic Planner software which help intermediaries to explain the potential stochastic impact of with-profits returns and calculate the tax and income prospects of dividend payments.
Tools to help explain the processes and potential impact of with-profits products are just one of the new additions to Dynamic Planner, as investment in commercial property can now be figured into stochastic calculations and portfolio planning.
Patrick Fitzgerald, product development director at Distribution Technology, says software modifications to the stochastic reporting system for financial planners now allows advisers to place a 'volatility dampener' on with-profits funds which in turn will help to explain how with-profits funds work and how they can be included in portfolios.
"With profits is the asset modeller’s greatest mystery because these funds are so shrouded in opacity. The majority of IFAs are quietly shifting their clients’ out of with-profits. But by allowing intermediaries to assume the control figure of these funds, we can help the general modelling of a client’s assets," adds Fitzgerald.
Another significant software modification is the inclusion of a new calculator, which allows the IFA to work out how much of the investment portfolio – which may include individual shares – requires tax payments on any dividends.
Moreover, the stochastic modeller is designed to highlight those periods when dividends may make up the bulk of a particular investment income, such as at a company with a higher asset price than the capital available in the bank.
Enhancements have also been made to allow separate graphs – rather than an entire report – to be downloaded into Excel.IFAonline
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