Efficient Model Portfolio Construction

DISCOVER ONLINE objectway.com/optimo

Optimo

BUILDING OPTIMAL MODEL PORTFOLIOS

A wide set of studies and market

analysis confirm that strategic asset

allocation is the most important

decision in the investment process.

However, because of the complex

set of variables to manage, Financial

Institutions need a structured rules

system providing an efficient and

dynamic model portfolio construction,

minimising operational risk and

ensuring MiFID compliance.

Based on Black-Litterman approach,

OPTIMO reduces the complexity of

asset allocation process and provides

a valuable solution to define strategic

and tactical asset allocation for your

customers.

An appropriate model portfolio

construction provides agile and swift

reaction to market fluctuations, with

a balanced management of strategic

bedrock and tactical concepts.

DELIVERING A HIGH QUALITY INVESTMENT OUTCOME

Leveraging on most used market standard

algorithms and approaches

Reducing asset allocation process complexity

and operational risk

Increasing efficiency and time/cost saving

Allowing different users to manage model

portfolio construction in a homogeneous way

External audit readiness and strategic/tactical

choices proving

MiFID compliant model portfolios

KEY BENEFITS

• Multi/Mono asset portfolio selection

• Market neutral portfolio management

• Benchmark portfolio (expected return/risk) and historical series management

• Quantitative indicators calculation (VaR, C-VaR, Volatility, Rolling Volatility, etc)

• Flexible financial view management: definition of forecast with a given confidence level

• Definition of absolute, relative or weighted views with a confidence level

• Business constraints management

• Portfolio Optimization based on Black-Litterman approach, according to MiFID requirements for customer target/clustering

• Tactical Portfolio Optimization through absolute, relative and weighted views, minimizing portfolio TEV

• Efficient frontier generation with a customizable number of portfolios: the best possible expected return/risk profile and correlation matrix

• Historical efficient frontiers management and comparison between different frontiers

• Portfolio what if simulation, risk analysis, forward and back analysis, TWRR calculation

BUSINESS FUNCTIONALITIES

• Real-time portfolio adjustment and simulation

• Information tracking, tracing of views and strategic/ tactical choices

• Providing all users with a unified platform

• Generating real-time efficient frontier

• Ex-ante and ex-post monitoring

• Multi-step optimization algorithm

• Demonstrating periodic review to re-check your strategies

• Natively integrated with Objectway advisory solutions

FEATURES

Digital modular products and engines for Banking, Securites & Insurance

Objectway is a leading provider of financial

software and digital solutions to the

worldwide financial services industry, with

clients in 15 countries. Its award-winning

software platforms are the trusted choice of

leading wealth and investment management

firms across the globe - from EMEA to

Canada to Central America.

From its offices in Italy, UK, Belgium,

Ireland and South Africa, Objectway has

more than 500 employees supporting

approximately 100,000 investment

professionals to manage more than

one trillion euros in wealth.

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