In this edition...
- The final frontier of research and due diligence conquered Eric Armstrong, Client Director
- Hours to minutes Eric Armstrong, Client Director
- World Economic and Market Outlook Graham O’Neill, Senior Investment Consultant, RSM.
- Inflation – what to make of the current dynamics Maria Municchi, Fund Manager, Sustainable Multi Asset Fund Range M&G Investments
- Sustainable Investing – advice from an old hand Hugo Thompson, Multi-Asset Investment Specialist HSBC Asset Management
- The biggest changes in ESG investing over the last 10 years Mark Coles, Head of Nationals & Networks Tilney Smith & Williamson
- Don’t try and defy gravity Catriona McInally, Business Development Manager – Investments Prudential
- Sustainable investing – the defining decades Hamish Chamberlayne, Head of Global Sustainable Equities | Portfolio Manager Janus Henderson
- Finding diversification beyond commercial property Shayan Ratnasingam, Investment Manager Liontrust Multi-Asset team
- Looking to alternatives in an uncertain world Chris Forgan, Portfolio Manager Fidelity Multi Asset
- Developing your investment proposition (CIP or CRP) David A Norman (DAN), CEO, TCF Investment
- Intergenerational Financial Planning Gareth Davies, Pension Specialist, Scottish Widows
- Is your online client reporting up to scratch? Natalie Holt, Content Editor, The Lang Cat
- Partnering here to stay as multi-asset solutions grow Antony Champion, Head of Intermediaries, Brewin Dolphin
- How to Capitalise on the Economic Recovery, Including Morningstar’s Portfolio Positioning Leslie Alba, Associate Director, Research Morningstar Investment Management Europe
- Unemployment insurance is back Kesh Thukaram, Co-Founder Best Insurance
The Synaptic Pathways value proposition is to double the efficiency of your research and advice processes.
There are huge benefits for customers of firms who engage with the research-led digital transformation offered by the new Synaptic Pathways research solution. Based on surveys with customers and industry norms, Synaptic are proposing the following benefits are available:
- more than halving the time taken to perform research, due diligence and compliance taken by firms, especially in relation to MiFID II.
- Integration of processes and availability of data reduces the need for look-ups in multiple locations and the re-keying of data.
- reducing errors omissions and improving the transparency, consistency and quality of advice across the board.
- enabling advice process to run more smoothly than ever, allowing advisers and administrators increase the amount of assets-under advice per adviser and therefore the profitability of the business.
1. Salesforce – the home of Synaptic
The only research solution to be entirely platformed on Salesforce platform. Salesforce is the world's leading CRM solution with the potential to help bring your firm's IT further into the 21st century.
- Scorching performance in data and task handling, proven security and usability.
- Links client, holdings and research records.
- Open platform data architecture, making easy to share data with your central CRM.
Synaptic have been offering clients valuations in various guises for over a decade. A new solution is now available to support the most comprehensive research solution available in the UK:
- Series of integrations with providers on a contract enquiry basis.
- Includes the Origo providers.
- Includes transaction history where available.
- Supports the new automated review process in Synaptic.
3. Digital Attitude to Risk Questionnaire (ATRQ) as standard
Synaptic Pathways is shipped with UK's leading psychometric Attitude to Risk Questionnaire from A2R:
- ATRQ is regularly reviewed and maintained in alignment with the Moody's Risk Categories.
- Allows advisers to successfully navigate the 3 tenets of risk governance – 1. the need to take risk; 2. Appetite or willingness to take risk; 3. The client's Capacity for Loss.
- ESG questionnaire can be included as option for clients filling out ATRQ as part of a wider profiling.
4. Moody's Investment strategy
Model has fixed risk boundaries and asset allocations that are rebalanced quarterly in line with Moody's current model state:
- Cautious / Very Cautious through to Adventurous / Very Adventurous; available 1-5 and 1-10 ranges.
- Comprehensive selection of discretionary asset managers (DFM) and IDD providers are configured in the system and accessible for research and review purposes, mapped to Moody's.
- Risk profiling of portfolios and funds is provided throughout the software as per the Moody's methodology.
- Full asset allocation model provided.
- Full stochastic forecasting capability, including 'age of ruin' for retirement planning as standard.
5. Capacity and tolerance for loss
The Moody's methodology creates a probability-based range of outcomes for any given investment, from which the extent of losses that can be expected in a bad year can be quantified. This value is given as part of the risk profile of a portfolio and is known as the 'min gain', a 'Value at Risk' metric.
- A Capacity for Loss assessment is made using a separate questionnaire which reviews the investment horizon.
- The reliance a client may have on the funds can be easily assessed and the impact any loss may have on standard of living, a determination which is captured in the research.
6. C.I.P. and product governance
Synaptic is the only research and due diligence solution to have been entirely designed post-MiFID II, ensuring that the PROD regulatory directives can be met with all illustrations, matching 'client types' or 'segments' with 'Target market':
- Networks and investment committees publish 'approved' panels for Platforms / Products / Portfolios / Funds as components for adoption by firms in their CIP.
- Ability for firms to view entire CIP comprising of ATRQ / Investment strategy (Moody's) / Platforms / Products / Portfolios in a single report.
- Adviser charging 'shapes' are configured as CIP components and can be pulled into research on ex-ante or ex-post basis.Full portfolio building and maintenance capability.
7. Whole of Market vs CIP mode illustrations
Mode applies to any illustration, governed by permissions set by network, allowing illustration for a recommendation to be completed with options drawn from Whole of market, or constrained by the options available via the CIP:
- When reviews take place, system supports adviser's decision to remain invested if in the best interests of the client, irrespective of CIP status.
8. Full research to assess replacement business (Reduction in Yield)
Synaptic's collation of costs and charges across investments offered across the industry, the ultimate proof of suitability is possible:
- An illustration comparing investment outcomes and reduction in yields from a range of platforms can be included with any ex-ante or ex-post illustrations as proof of 'value for money', based on product and portfolio choices.
- In the event of the adviser requiring an illustration with multiple wrappers on a platform to be considered in a single piece of research, in line with current methodology, Pathways will provide a 'multiple report' evidencing illustrations for more than one wrapper as required, including a combined reduction in yield calculation.
- In the event that switch is to be made, system assumes that proposal will be aligned to CIP, and full switching calculations are providing including platform-based comparisons, alignment of growth rates and maturity vales and calculation of critical yield.
9. Suitability Checklist
The key benefit of Synaptic Pathways to the network, firms and advisers is the establishment of suitability of investments to the highest bar of proof possible. Ex-ante and ex-post illustrations include a 'Checklist' to ensure all suitability considerations have been made, including full MiFID costs and charges disclosure and the checklist:
- Name of illustration.
- Objective for recommendation.
- Investment horizon.
- Capacity for Loss.
- Tolerance for loss / client risk profile.
- Knowledge and experience of investor.
10. Compliance, research and due diligence for new business or review
Key research outputs and associated journeys offered by investment pathways:
- ATRQ risk profile.
- CIP summary report.
- Ex-ante report.
- Ex-post report.
- Switching report.
- Panel comparison (any investment or portfolio scenario).
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