Asset Management For The Retail Market

Considering the unfavourable demographic developments and the weak economy, a significant decrease in pension payments is unavoidable. More than ever, the majority of future senior citizens needs a suitable financial plan.

Secure savings models, such as a classical savings account or government bonds, do not create sufficient yields to finance retirement. Stocks promise higher returns. As conventional wisdom has it, long-term stock investors tend to profit, regardless of when they enter the markets. While this is a catchy and popular idea, it isn’t much of a long-term investment strategy, because statistically speaking, it only applies to select periods.

So what is a good investment strategy? Insecurity prevails, not only among future investors, but also with financial advisors in savings banks and branch offices. Financial experts usually recommend a balanced mix of stocks, bonds, fonds and certificates. Equally essential for successful investments are clearly defined investment objectives, knowledge about the right methods and systematic administration of assets.

Kurt Cotoaga, Product Manager at IS.Teledata AG, underscores the significance of a professional approach to retirement provisions: "Future senior citizens need asset and portfolio management which take into account risk and yield considerations as well as financial possibilities and demands."

To meet the high demands of professional asset management, financial advisors have to go to great lengths: They have to know the ins and outs of trading, financial mathematics and portfolio management. The problem: Many financial service providers advertise their pension schemes. Most of the employees entrusted with this responsible task still lack the expertise required for advanced private banking. Similarly missing are efficient, standardised business processes that support well-founded financial advice focussing on long-term pension plans. The provision challenge of private investors presents financial service providers with excellent opportunities to open up a high-yield market. Customers tend to commit themselves for long terms, they require much advice and promise high yields from commissions.

But a successful "asset management for the retail market" requires a simplified investment process for all involved parties. Enter IS.Private Wealth: The web-based portfolio management system by IS.Teledata AG offers helpful support in investment decisions. It examines the investment process in asset management in several ways: Financial advisors and investors together analyse performance and allocation of portfolios. They identify risks and re-allocation requirements. They simulate potential market scenarios using stress tests. The system reliably guides advisors and customers through the investment process and fully integrates with the workflows of branch offices. At the bottom line, IS.PrivateWealth reduces financial advisor efforts and helps to arrive at well-founded investment recommendations more quickly.

An important part of IS.PrivateWealth is the Asset Scanner. Using this financial application, advisors and investors can examine security portfolios and compare them with sample portfolios of financial service providers. The Asset Scanner shows assets by sectors, countries, currencies and periods and visualises the composition in charts and tables. Financial advisors benefit from the clear presentation of information to identify hidden risks and deviations from select model portfolios and counteract them with suitable re-allocations. The advisor thus helps investors to reap higher yields with well-attended riskier investments and to boost his retirement assets.