Modelity/Advisor is a financial modeling platform providing Advisors with the individualized portfolio analysis, control and management tools required to forge and maintain stronger client relationships.
It is designed for face-to-face consultancy, facilitating the provision of personalized advice, accounting for client risk tolerance, financial constraints and expectations. Its processes can identify sales opportunities and ensure demonstrable compliance with regulatory requirements.
Modelity/Advisor analyzes portfolio’s risk and performance, based upon industry standard or customized models.
Modelity/Advisor is an open box solution, available as a customized combination from its components menu:
- Profiling and Optimization
- Risk Management
- Performance Attribution
- Financial Planning
- Management and Supervision
- Financial Modeling Infrastructure
PROFILING AND OPTIMIZATION
The Profiling and Optimization component provides optimized portfolios, based on the client’s profile, accounting for:
- Risk tolerance
- Client constraints
- Institutional and regulatory constraints
- Financial expectations
- Investment universe
The Risk Management component analyzes the client’s risk levels using a variety of models, including Historical Simulation VaR, Parametric VaR, Monte-Carlo Simulation and others. The risk level may be calculated in real time or as a scheduled task that assists in identifying clients as they deviate from their desired risk levels.
The Performance Attribution component analyzes the client portfolio’s past performance. The return is calculated using Time Weighted Return, Money Weighted Return, or combinations of the two. As the algorithm used to calculate the return is implemented using Modelity’s FiMoML (Financial Modeling Markup Language), it may be changed by the user. In addition to the return calculation and analysis, additional statistics such as management efficiency factors (e.g. Information Ratio) may be calculated.
The Financial Planning component enables financial institutions to offer an all-encompassing planning service to clients and help them prepare for life goals and retirement.
Using Monte-Carlo Simulations on market scenarios and a simple user interface, a client can estimate the probability of reaching his/her financial retirement goals and perform “what-if” simulations under various assumptions.
MANAGEMENT & SUPERVISION
The Management and Supervision component facilitates the constant surveillance of risk levels, efficiencies and other portfolio characteristics. Supervisory data may be used to locate global or local inefficiencies and expectations at the advisor level (i.e. an advisor’s client base), brach or regional levels.
The Advisor Activation functionality within this component dramatically enhances screening capability. Advisors are able to increase sales and transactions by efficiently screening non-optimal portfolios, detecting changes in risk levels, identifying portfolios with overvalued stocks, etc.
FINANCIAL MODELING INFRASTRUCTURE
The Financial Modeling Infrastructure is an integrated development environment for financial modeling. On this platform, new financial models may be developed by financial professionals without any programming skills.
Developing a new model within this environment takes a fraction of the time it takes to program the same functionality within third-generation programming languages such as Cobol, C++ and Java.