R&SA releases online diversifying tool
Royal & SunAlliance Financial Services(R&SA) has launched an online portfolio blending tool that links funds of the same sectors or styles which do not share a common history in volatility or returns.
Going by the name of Epic (Efficient Portfolio Constructor) the tool, designed in consultation withInvestorWeb Research, allows advisers to assess investment portfolio risks and returns.
R&SA general manager of sales and marketing Ken Brewer says the tool is useful given the difficult investment environment advisers find themselves in.
“It is able to model a client’s existing or potential portfolio to give the greatest return potential with the lowest volatility and does so by modelling a combination of investments determined by the adviser from a list of 5600 funds on IWL’s database,” he says.
He adds that the tool measures the extent to which an investment in one fund provides returns in step with another. The benefit of this, he says, is that advisers are able to gain insights into diversifying between funds.
The tool also provides advisers with a report to give to their clients which details why the portfolio recommendations have been made.
“This then satisfies any legal obligation for advisers to have grounds on which to base their investment recommendations,” Brewer says.
Epic has been taken up byTyndalland is available free from their Web site at www.tyndall.rsafs.com.au.
AUTHOR
Lachlan Gilbert
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