Reading time: 2 min
OWINTALK | BEHIND BUSINESS, BEYOND NEWS
The goal-based investment process delivers a coherent transparent, goal-driven and client centric advisory process that enables to digitally define goals, simulate investment scenarios, invest and periodically review investment strategy aligning goals with customer wealth.
A typical goal-based investment process develops in a four-phase closed loop:
ENGAGE AND PROFILE
- Capturing customer data.
- Analysing financial needs (current and future).
- Goal attribution (goal type, time horizon, risk attitude, and expected returns).
ANALYSE AND PLAN
- Global wealth view, either at present and projected in the future.
- View on liabilities, assets, real estate, cash flows, incomes, and expenses.
- What-if scenarios analysis and life event planning to define goals.
After this analysis of the market what is clear is that, even if the trends aren’t changed a lot for this year, there is an increasing focus on:
PROPOSE AND EXECUTE
- Proposing an investment solution, choosing the best asset allocation model portfolio in line with the customer and goal characteristics.
- Proposing an investment solution that is tailored cut for the customer and with a pre-trade suitability test, thus MiFID compliant.
- Generate the list of buy/sell operations.
MONITOR AND REVIEW
- Proactive monitoring by means of alerts, to immediately detect deviations suggesting the necessity of a portfolio or goals review and rebalance.
- Continuous risk monitoring.
- Management reporting.
Great solutions for goal-based investment processes.
A SOLUTION AT WORK HERE
The right solution should support each and every phase of the loop. We said supports right because the solutions constantly evolve, to support the processes required by the market at any given moment.
The main step is focused on client diagnosis and needs analysis that is managed and integrated with other products to make up a straightforward wealth management process (whatever its specific requirements are, wm process starts defining strategic and tactical asset allocation).
Implementing and supporting different advisory models, it is up to the customer to choose the preferred approach and to switch in a seamless way from one to another, according to his current needs, preferences, attitudes toward digitalization.
When the investment proposal is generated, the investor protection and suitability check is executed.
The resulting solution delivers by performing a continuous monitoring of client, goals, and suitability. User experience is either satisfying and pleasant. Supporting goal-based investment processes: done.