B&H Wealth Scenario Generator (US Edition)

Transcription

B&H Wealth Scenario Generator (US Edition)
ENTERPRISE RISK SOLUTIONS
B&H Wealth Scenario Generator (US Edition)
The B&H Wealth Scenario Generator is a stochastic projection engine for modeling investment products
and cash flows, designed to support retail investment advice and financial planning. It is used within client
applications: advice tools, suitability assessment, defined contribution (DC) pension planning portals,
product comparisons, what-if toolsets, and direct-to-consumer platforms. The economic data used within
the B&H Wealth Scenario Generator is created using the award-winning B&H Economic Scenario Generator.
The Challenge: Mapping Client’s Financial Objectives, Risk Profile, and Capacity for Loss
Although most financial advice processes consider risk attitude, many have failed to take appropriate account of the client’s specific
financial needs or capacity for loss. A main reason for this is that advisors have not previously had the tools to help them illustrate
to clients the potential loss in terms that that they can easily relate to their financial needs. However, with retail financial market
regulators now focusing on suitability and capacity for loss, product providers and advisors are responding to the regulation by
seeking new ways to communicate risk in investment products to retail customers.
The Solution: Sophisticated Stochastic Modeling for Financial Planning
Unlike other financial planning tools used in the wealth management sector, the B&H Wealth Scenario Generator captures all capital
market risk factors required to illustrate the likely range of financial outcomes, for any given investment strategy and cash-flow profile. This
allows advisors and customers to compare the risk and return of different investment options in the context of their own financial needs
and risk profile.
POWERING A WIDE RANGE OF FINANCIAL PLANNING AND ADVICE SOLUTIONS
Accumulation & Suitability
Retirement Income
Direct to Consumer
Retirement Portfolio Analysis
Retirement solution options
Retirement
options
Expected
death benefits
Guaranteed
value (£ pa)
100%
Moderate
£0
£13,900
Drawdown Cautious
30%
Cautious
£54,750
£0
Drawdown Balanced
64%
Balanced
£82,200
£0
Drawdown Growth
79%
Moderate
£101,900
£0
Drawdown Adventurous
83%
Adventurous
£127,050
£0
Annuity & Drawdown Cautious
57%
Cautious
£43,375
£3,200
64%
Cautious
£59,212
£2,500
63%
Balanced
£65,705
£1,750
Annuity & Drawdown Cautious
Annuity & Drawdown Balanced
Income
sustainability
Detail
Risk
tolerance
Annuity
INVESTMENT TERM (AGE)
RISK TOLERANCE
75 years old
Moderate
Scatter chart
Income
comfort zone (£ pa)
INCOME TARGET
£5,000
MIN
£10,000
£15,000
MAX
Application Programming Interface (XML, API)
B&H Wealth Scenario Generator
Stochastic Asset
Projections
Investment Portfolio
Modeling
Product Rules & Cash-Flow
Modeling
Mortality & Annuity
Modeling
Forward-looking economic models
Multi-Asset Portfolios
Single, Regular Premium
Standard & Configurable
Multi-economy, Multi-currency
Flexible Contribution Profiles
Mortality Modeling Bases
Product Cash-flow Rules
Structured Products and
Guarantees
Flexible Annuity Pricing Options
Assumptions documented
Funds of Funds, Multi-Manager
Diversified Growth Funds
Global coverage of economies
and asset classes
Lifestyle Asset Strategies & Target
Dated Funds
Alternatives, Emerging Debt,
Commodities, Infrastructure
and Hedge
Dynamic Asset Allocation/CPPI
With Profits
Variable and Asset-Linked
Equity Release
Tax & Lifetime Allowance
Flexible Charge Structures
Asset & Economic Modeling Layer
Asset Returns
Interest Rates
Inflation
MOODYS ANALYTICS B&H WEALTH SCENARIO GENERATOR (US EDITION)
Currency/FX
Mortality
The B&H Wealth Scenario
Generator powers many
of the leading web-based
financial planning,
retirement and investment
decision support tools.
The B&H Wealth Scenario Generator Helps Advisors Address Advice and Suitability Challenges
With the B&H Wealth Scenario Generator advisors can:
»» Access dynamic what-if analysis—compare different financial planning options, alternative investment strategies, contribution or
income levels and investment term.
»» Capture all risk factors impacting client outcomes: asset prices, interest rates, inflation, and longevity.
»» Assess investment suitability—illustrate potential loss, and align investment solutions with a client’s risk profile and financial
objectives.
»» Offer a value-added advice service utilizing an efficient basis for monitoring a portfolio against client needs using automated
tracker alerts.
»» Provide an objective basis to validate portfolio rebalancing and consolidation.
»» Illustrate the impact of product features such as guarantees or target date glide-path.
»» Calculate the likely contribution rate required to meet a financial goal.
Benefit From Award-winning Economic and Investment Modeling Capability
With the B&H Wealth Scenario Generator advisors have:
»» Institutional-quality economic scenario generator capability.
»» Quarterly updates to economic assumptions, consistent with current market prices and market conditions.
»» A wide range of assets modeled consistently across multiple markets, including real estate, alternatives, hedge, commodities, infrastructure, and emerging market debt.
»» A multi-currency, multi-economy model which supports advice and planning solutions in any market or currency.
»» Support by Moody’s Analytics global financial economic research group.
»» Comprehensive documentation of all models and quarterly economic assumptions.
»» Ability to model a wide range of sophisticated product features: asset allocation glide-paths, constant proportion portfolio insurance,
guarantees, investment-linked and variable annuities.
»» Modeling functionality that can be configured for the advisor’s or product manufacturer’s own investment proposition and
product terms.
Integration and Deployment
The B&H Wealth Scenario Generator has a fully documented application programming interface (API), designed to support easy
integration with existing client services, platforms and toolsets. Our Implementation Services team help clients design and integrate
their own planning solutions.
Moody’s Analytics supplies the B&H Wealth Scenario Generator calculation engine and API, configured according to our client
requirements. Clients may then create the end-user interface according to their own brand and user experience requirements.
Alternatively, a number of solution partners have already integrated the B&H Wealth Scenario Generator into their financial planning
propositions and platforms, powering stochastic analysis for their clients.
CONTACT US
Visit us at barrhibb.com or contact us at a location below:
AMERICAS
+1.212.553.1653
[email protected]
EMEA
+44.20.7772.5454
[email protected]
ASIA (EXCLUDING JAPAN)
+85.2.3551.3077
[email protected]
JAPAN
+81.3.5408.4100
[email protected]
Copyright © 2014 Moody’s Analytics, Inc. All Rights Reserved.
MOODYS ANALYTICS B&H WEALTH SCENARIO GENERATOR (US EDITION)
SP23003/101215/IND-IG