Financial advisers get access to portfolio stress test
Instreet Investment is developing a portfolio stress test and risk management service for direct share and exchange traded fund portfolios that gives financial advisers the ability to "check-up" and quantify the investment risks in their clients' portfolios.
The Portfolio Check-Up has been developed in conjunction with Risk101 - a global company offering front, middle and back-office valuation and risk management solutions to institutional clients.
"This service will enable financial advisers to easily quantify and explain the risk in their clients' share and ETF portfolios, ensure clients are comfortable with how their portfolios are constructed, be able to quantify the expected portfolio performance, and, significantly, have a mechanism that better explains where performance is expected to be derived," Instreet managing director George Lucas said.
"Quantifying and understanding investment risk has long been recognised as an integral element in any institutional portfolio management process. With Instreet Portfolio Check-Up, financial advisers will be able to offer a similar service for their clients," he said.
The reporting service will be offered to the retail market via the financial adviser network, with early 2012 the target date for the formal launch.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
