In this edition...
- Investing in clean technology for tomorrow’s renewable economy Hamish Chamberlayne, Head of Global Sustainable Equities
- Will there be a soft landing for the UK housing market? Katie Poulson, Client Engagement & Marketing Manager - RSMR
- The changing face of growth James Budden, Director of Marketing and Distribution - Baillie Gifford & Co
- Managing CGT through unitised funds ,
- Higher inflation not the end of the 60/40 portfolio Giulio Renzi-Ricci, Head of Asset Allocation - Vanguard
- Reality will bite for central banks Ariel Bezalel, Investment Manager, Jupiter Strategic Bond Fund - Jupiter
- The Synaptic Pathways guide to research and due diligence ,
- Offering self-reliance in due diligence for reviews ,
- How to approach reviews: the task that defines firms Eric Armstrong, Client Director - Synaptic
- Integrate your Centralised Investment Proposition (CIP) with Synaptic Pathways ,
- Synaptic Pathways can take your firm’s asset allocation a step further than Nobel prize winning Modern Portfolio Theory ,
- The first rule of financial planning: insure the breadwinner Synaptic,
- Hours to minutes Synaptic,
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 is 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 the advice process to run more smoothly, allowing advisers and administrators to increase the amount of 'assets-under advice' per adviser, and therefore the profitability of the business
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 it easy to share data with your central CRM.
Synaptic has 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 inSynaptic.
Digital Attitude to Risk
Questionnaire (ATRQ) as standard Synaptic Pathways is shipped with the 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 an option for clients filling out ATRQ as part of a wider profiling.
› ATRQ can be sent to the client via an email link which will update the client record automatically when completed.
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.
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 system quantifies the extent of possible losses so the adviser is able to explore the impact of losses on the client’s standard of living, a determination that is captured in the report.
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.
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, the system supports an adviser’s decision to remain invested in the best interests of the client, irrespective of CIP status.
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, the system assumes that proposal will be aligned to CIP, and full switching calculations are provided including platform-based comparisons, alignment of growth rates and maturity vales and calculation of critical yield.
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.
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)
For a free trial or demo call:
0800 783 4477
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