Efficiently Create Wealth Management Proposals for Clients and Prospects www.PSCWealthElements.com WealthElements is a cloud-based, proposal-generating software designed to help financial advisors implement an efficient, systematic and scalable business model. ■ ■ Streamlined process with the right balance between comprehensive analysis and ease of use ■ ■ Client data import through integration with Winfund W. connect saves time ■ ■ Aggregation of a broad range of investment product data eliminates the need to access multiple applications and saves money ■ ■ Tablet-friendly interface ■ ■ Customizable, client-friendly proposals in PDF format ■ ■ Supports multiple currencies INVESTMENTS FINANCIAL PLANNING INSURANCE Critical Illness Insurance Needs Disability Insurance Needs Life Insurance Needs Education Needs Retirement Needs Cash Flow Asset Allocation Analyst Net Worth
Transcript
Efficiently Create Wealth Management Proposals for Clients and Prospects
www.PSCWealthElements.com
WealthElements is a cloud-based, proposal-generating software designed to help financial advisors implement an efficient, systematic and scalable business model.
■■ Streamlined process with the right balance between comprehensive analysis and ease of use
■■ Client data import through integration with Winfund W.connect saves time
■■ Aggregation of a broad range of investment product data eliminates the need to access multiple applications and saves money
■■ Tablet-friendly interface
■■ Customizable, client-friendly proposals in PDF format
■■ Supports multiple currencies
INVESTMENTS FINANCIAL PLANNING INSURANCE
Critical Illness Insurance Needs
DisabilityInsurance Needs
Life Insurance Needs
Education Needs
Retirement Needs
Cash FlowAsset Allocation Analyst
Net Worth
Each of the WealthElements modules can be used on its own or in conjunction with any number of integrated modules to create a customized proposal that is right for each client or prospect.
Investments
Insurance
■ Set any number of income replacement periods each with their own unique income replacement needs
■ Considers assets to be liquidated upon death and liabilities that may already be insured
■ Alternate scenario sliders to immediately assess the impact of the changes to variables
Step 4: Review portfolio
■ Highly visual and dynamic portfolio and individual holding level statistics for current and proposed portfolios
■ Now including account fees and MERs comparison
Step 1: Current situation
■ True, up-to-date, portfolio asset class exposure based on the allocation of underlying funds
■ Single or multiple accounts setup
■ Asset mix breakdown for all accounts combined or account by account
■ Ability to group accounts by investment objectives
Step 3: Build portfolio
■ One or more model portfolios for each investor profile
■ Users can create and save their own model portfolios
Step 2: Investor profile
■ Integrated investor profiling questionnaire
■ Appropriate target asset allocations for each profile
■ Asset mix analytics to help educate clients about the importance of asset allocation and diversification
Determine how much insurance a client might need to protect themselves and their families in the case of disability, critical illness or death.
A simple 4-step portfolio construction and analytics process that helps build a compelling case for investment recommendations. The Asset Allocation Analyst module’s comprehensive list of analytics range from a simple investment growth chart to Alpha and Sortino Ratio metrics, allowing you to create a proposal that is as simple or complex as required.
Financial planning
■ “Quick Capture” data grid entry mode option
■ Default values to accelerate data entry
■ Shared data between modules to eliminate data entry duplication
Assess a client’s current financial well-being.
Quantify retirement goals and establish a sustainable plan
■ Accommodates two distinct approaches to setting retirement income needs: % of current income or specific net amount
■ Flexibility to set any number of retirement income need periods
■ Alternate scenario sliders to immediately assess the impact of changes to the plan
■ Asset accumulation/de-cumulation or retirement income views
■ Considers all applicable government grants
■ Education cost estimates based on location provided by default
■ Alternate scenario sliders to immediately assess the impact of the changes to the plan
■ Auto-solve functionality to determine additional savings requirements
Quantify education savings goals and establish a sustainable plan
EquiSoft specializes in the design and development of digital business solutions for the financial and insurance industries. To find out more about our products, custom solutions or our expertise on demand, please visit our website: www.equisoft.com
ProposalsWealthElements provides advisors the tools they require to efficiently generate industry-leading proposals customized to any client’s or prospect’s particular needs.
This report is based on the notion that most of a portfolio’s return over the long term can be attributed to asset allocation, not to stock picking.
we identify the optimal asset
needs in terms of risk and return.
Our aim is to provide you with a solid foundation for your newinvestment portfolio.
02R EPORT PREPARED FOR AL B ERT C L I ENT AND L OU IS E C L I ENT ON F E B R U A R Y 1 6 , 2 0 1 0
See disclaimer on page 33
Marc BrokerInvestment AdvisorAAA Financial Services
Towards an ef�cient portfolio YOUR NEW PO RT FOLIO : OV E R ALL V IEW
In this page you can see which funds we picked to build your new portfolio and how they combine to o�er you an optimized asset allocation.
After �nalizing your Proposed asset mix, we can now build your custom portfolio using individual securities. In this analysis page, pie charts represent the asset class composition for the individual securities together
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as an overall portfolio. Your Proposed asset mix holdings are broken down by Asset Class, Geographic R egion, Style and Equity Market Capitalization.
OB J EC T I VE : R E T I R EMEN T
REPO RT P R EPA R ED FO R A LBE RT C LIEN T AND L OU I S E C LIEN T ON FEBRUARY 16, 2010
See disclaimer on page 33
Selection of funds
A PORT FOLIO B UILT ON AN OPTIMI ZED ASS ET ALLOCATION
This is: your proposed portfolio
Asset allocationBY ASS ET CLASS BY STYLE
BY G EOGR APHIC R EGION BY EQUITY MAR KE T CAPI TALIZATION
% Other 0.4
Bonds 7.0
Cash and equivalent 4.0
Equity – International 27.1
Equity – US A 26.7
Equity – Canada 34.8
%
Blend/GAR P
52.20
Value 25.60
Growth
22.20
% Canada 40.3
U nited States 27.7
Europe 15.0
Asia 13.6
Other 3.4
% Large Cap 60.30
Mid Cap 12.40
S mall Cap 20.30
Not classi�ed 7.0
ASSET NAME STYLECODE
TCW3457
NBG5676
MCM0426
DCM524
SFM546
BIP227
PIA6487
INVESTMENT WEIGHTING
Large Cap GrowthTCW Group : TCW Large Cap Growth [SA]
Large Cap ValueNeuberger Berman, LLC : Large Cap Value (SMA) [SA]
Mid Cap CoreMunder Capital Management : Mid-Cap Core Growth [SA]
Small Cap GrowthDelaware Capital Management : Small Cap Growth Equity [SA]
Small Cap ValueSystematic Financial Management, L.P. : Small Cap Value [SA]
International EquitiesBrandes Investment Partners, L.P. : International Equity (Closed)
Domestic GouT/Corp BondsPaci�c Income Advisers : Market
$220,000 22.00%
$231,000 23.10%
$124,000 12.40%
$178,000 17.80%
$25,000 2.50%
$152,000 15.20%
$70,000
$1,000,000
7.00%
100.00%
Report prepared for Albert Client and Louise Client
Marc BrokerInvestment AdvisorObjective: retirement Co.
Your investor ProfileWHO yOu ArE IN tErMs OF INvEstMENt
the first step in analyzing your investment portfolio is to precisely determine your ability and willingness for risk. this is determined through the Investment Questionnaire. After completing the questionnaire we can determine your optimal asset mix.
the Investor Decision grid addresses the basic issues at the heart of any sound personal investment strategy: the nature of the returns required; the tolerance for short-term losses, or downside risk; the projected time horizon for the particular investment. your answers to
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questions in the grid lead to a proposed strategic asset allocation portfolio that fits your financial needs, providing a suitable balance between return and downside risk.
tIMEHOrIzON
rIsKtOLErANCE
CurrENtINCOME
FINANCIALstABILIty
LEvEL OFDIsCrEtION
BENCHMArK
long
high
low
highlow
short termconservative
moderate
conservative
short termbalanced
short termaggressive
How did we get to this?see next page.
your profile: balanced
OBjECtIvE: rEtIrEMENt
rEPOrt PrEPArED FOr ALBErt CLIENt AND LOuIsE CLIENt ON NOvEMBEr 15, 2008
See disclaimer on page 33
positive
balanced
aggressive
Your benchmarkWHAt yOur POrtFOLIO sHOuLD BE tO BE EFFICIENt
Asset allocation is based on the notion that for each investor profile there is an optimal allocation of the invested capital that offers maximal return expectations consistent with acceptable risk. this is called the efficient frontier.
the strategic asset allocation portfolio that you agree on with your advisor based on your investment questionnaire becomes your benchmark portfolio. It reflects long-term objectives, regardless of the short-term market outlook. to help align your current asset allocation with the proposed, mutual fund investments
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are unbundled into their pure asset class components using certain simplification assumptions. the assumed breakdown of a fund can be viewed from within the software. Portfolios that are not found on the efficient frontier may be re-allocated to achieve a higher expected return for a given level of risk.
efficient frontier
EFFICIENt FrONtIEr AND AssEt ALLOCAtION
Expe
cted
ann
ual n
omin
al r
etur
n (%
)
risk – standard deviation
226 8 10 12 14 16 18 20
11
10
9
8
7
6
5
4
3
Equities – International
Equities – usA
Equities – Canada
Bonds – International
short-term portfolio
Cash
Bonds – Canada
your current portfolio is: somewhat off-the-mark
OBjECtIvE: rEtIrEMENt
rEPOrt PrEPArED FOr ALBErt CLIENt AND LOuIsE CLIENt ON NOvEMBEr 15, 2008
See disclaimer on page 33
Aggressiveportfolio
balanced portfolio
Equities
Bonds
Cash
this is your benchmarkasset allocation
this is where you currrently stand. see next page.
!
growthportfolio
Prudentportfolio
Conservativeportfolio
Fund profiletrIMArK gLOBAL BALANCED FuND FuND CODEs: AIM1771 - AIM1773 - AIM1775 - AIM1779
Fund category: global Equity Balanced
Fund Objectives: • risk rating: low • Investment objective: income/growth
Bruce Harrop runs the show here, and the standardtrimark investment philosophy is followed. Harrop has a DCF model for each company in the portfolio, and its purpose is to establish an expected return for each stock. securities are ranked by expected return, and in general, the higher the expected return, the higher the weighting in the fund. the asset allocation decision is also based a bottom-up process. Harrop speaks regu-larly with rex Chong, who runs the fixed income portion of the fund, and dollars are shifted to the manager with
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the better investment opportunities. stocks are sold for one of three reasons: 1) A better opportunity existselsewhere, 2) the investment managers made a mistake, and 3) the valuation target has been reached. Most of the equity exposure is to non-u.s. names and a good chunk of the bond component is innon-Canadian issues. this will tend to be a fairly conservative portfolio and in-vestors should find comfort in knowing that Harrop also has the talents of trimark’s global team backing him.
OBjECtIvE: rEtIrEMENt
rEPOrt PrEPArED FOr ALBErt CLIENt AND LOuIsE CLIENt ON NOvEMBEr 15, 2008
See disclaimer on page 33
Fund detailsEquity style
Inception October 1999
v B g
L
M
s
strAtEgIC CurrENt Equities – Canada 10.0 10.6 Equities – usA 40.0 8.8 Equities – International 1.0 0.0 Bonds – International 4.8 36.2 Bonds – Canada 26.0 23.3 Cash and equivalent 0.0 15.2 Not classified – 0.0
Portfolio composition % as of 2008-11 asset allocation History as of 2008-11
100 -
80 -
60 -
40 -
20 -
0 -10-2006 07-2007 04-2008
Manager/tenure rex Chong: 9.2 year(s) Anthony Imbesi: 6.1 year(s) Bruce Harrop: 4.2 year(s)Benchmark Fundata global Balanced-Equity Focus IndexMEr 2.34%
FuND QuArtILE BENCHMArKreturn since inception 4.5 2.2return ytD -22.5 2 -11.0return 1 year -23.7 2 -12.3return 3 years -4.2 2 -0.1return 5 years -0.3 3 2.3return 7 years 2.2 1 0.1return 10 years – 0.0
3 years Quartile 5 years Quartilesharpe ratio -0.63 1 -0.28 3Alpha -0.01 2 -0.01 3Information ratio -1.94 2 -1.35 3std. dev - fund 11.52 4 10.41 4std. dev - benchmark 9.04 8.70
Risk/return analysis as of 2008-11
investment growth (thousands of $) as of 2008-1125 -
20 -
15 -
10 -
5 -2000 2002 2004 2006 2008
fund
benchmark
this fund is: recommended for your portfolio
ASSETS & LIABILITIES DETAILS
The following values have been provided by you and should reflect your best estimate of your total assets and liabilities.
Home$550,000
Retirement Account$415,644
Jill's TFSA$13,750
Junior's RESP$9,756
Home Mortgage$257,900
Personal Line of Credit$54,236
Investable$439,150
Non-Investable$550,000
Assets Liabilities
Name Amount Owner Type
Assets
Registered Investments
Retirement Account $415,644.00 Example, Jack RRSP/RRIF
Junior's RESP $9,756.00 Example, Jack RESP
Non-Registered Investments
Jill's TFSA $13,750.00 Example, Jill TFSA
Personal Properties
Home $550,000.00 Example, Jack Residence
Liabilities
Long-Term Liabilities
Home Mortgage $257,900.00 Example, Jack Mortgage
Liabilities
Personal Line of Credit $54,236.00 Example, Jack Line of Credit
REPORT PREPARED FOR MR JACK EXAMPLE AND MRS JILL EXAMPLE ON 05/24/2012
SEE DISCLAIMER PAGE.
Page 6 of 32
YOUR RETIREMENT NEEDS - CURRENT PLAN
You are not on target to achieve your goal.
The estimated total value of the selected account(s) will be $1,179,728 at the time of retirement. Based on theassumptions provided, this will result in a shortfall of $1,993,718 at the end of the projection period.
Based on this scenario, the household will experience a retirement income shortfall when Jill Examplereaches 70.
The projection below displays the calculated change in the value of your investments year by year for theduration of your estimated life expectancy.
($2,000,000)
$0
$2,000,000
50 60 70 80 90
Life expectancy (Jill Example)
Retirement year (Jill Example)
Life expectancy (Jack Example)
Retirement year (Jack Example)
Registered Investments
Non-Registered Investments
Shortfall
This projection displays your various incomes sources, your retirement income objective and an achievablegoal year by year for the duration of your estimated life expectancy using the assumptions you provided.
$0
$100,000
$200,000
70 80 90
Age of Jack Example
Income Goal
Shortfall
Other Income
Earned Income
Pension Benefits
Gov. Benefits
Sav. Withdrwls
Loans
This report is provided for illustration purposes only. The ability to forecast your future financial situation is impacted by a wide variety of factors many of whichcan change significantly over time and not all of which can be included in this calculation. You should regularly review your current financial position andfuture goals to improve the likelihood of achieving success.
REPORT PREPARED FOR MR JACK EXAMPLE AND MRS JILL EXAMPLE ON 05/24/2012
SEE DISCLAIMER PAGE.
Page 12 of 32
YOUR EDUCATION NEEDS - CURRENT PLAN
You have identified the current investments listed below as investments that will be used to fund your child/children's post-secondary education.
Example, Junior
Investments
Name Type Total Expected Return Owner
Junior's RESP RESP $9,756.00 5.00% Example, Jack
You are not on target to achieve your goal.
Based on the assumptions provided, Junior Example will require savings of $96,945.11 at the time post-secondary education begins in order to meet education related expenses.
Based on the current savings strategy, the estimated value of the education savings at the time this childbegins post-secondary education will be $12,451.40.
$96,945
$12,451
($84,494)
($100,000)
($50,000)
$0
$50,000
$100,000
Projected Costs
Projected Savings
Shortfall
This report is provided for illustration purposes only. The ability to forecast your future financial situation is impacted by a wide variety of factors many of whichcan change significantly over time and not all of which can be included in this calculation. You should regularly review your current financial position andfuture goals to improve the likelihood of achieving success.
REPORT PREPARED FOR MR JACK EXAMPLE AND MRS JILL EXAMPLE ON 05/24/2012
SEE DISCLAIMER PAGE.
Page 20 of 32
YOUR EDUCATION NEEDS - CURRENT PLAN
You have identified the current investments listed below as investments that will be used to fund your child/children's post-secondary education.
Example, Junior
Investments
Name Type Total Expected Return Owner
Junior's RESP RESP $9,756.00 5.00% Example, Jack
You are not on target to achieve your goal.
Based on the assumptions provided, Junior Example will require savings of $96,945.11 at the time post-secondary education begins in order to meet education related expenses.
Based on the current savings strategy, the estimated value of the education savings at the time this childbegins post-secondary education will be $12,451.40.
$96,945
$12,451
($84,494)
($100,000)
($50,000)
$0
$50,000
$100,000
Projected Costs
Projected Savings
Shortfall
This report is provided for illustration purposes only. The ability to forecast your future financial situation is impacted by a wide variety of factors many of whichcan change significantly over time and not all of which can be included in this calculation. You should regularly review your current financial position andfuture goals to improve the likelihood of achieving success.
REPORT PREPARED FOR MR JACK EXAMPLE AND MRS JILL EXAMPLE ON 05/24/2012
