CIOS Optimization Engine

The Optimization Engine is our portfolio optimization and rebalancing tool and is part of our investment management software: set clients restrictions and manage portfolio rebalancing

Portfolio construction is a complex and time-intense task, with advisors and portfolio managers being confronted with a number of challenges.

While each client has individual investment restrictions, preferences and needs, all portfolios at the same time need to comply with the internal investment policies, too. Learn how our investment management software optimises this process.

Learn more about our Optimization Engine:

Portfolio construction, risk and compliance management are integrated within one application.

Individual portfolio construction and documentation in < 1 sec.

Save up to 40 % of the time for a portfolio manager or bank advisor.

The Optimization Engine gives you a comprehensive overview about all relevant criteria such as:

• Are the asset and sub-asset class allocations within the bandwidths?
• Is the portfolio sufficiently diversified across sectors and regions?
• Does the exposure to a certain issuer exceed bank limits?
• Does the portfolio violate the bank´s concentration risk limits?
• Does the client have instruments that are on the restricted trading list?
• Does the portfolio contain sell-rated instruments?
• Does the client have permanent client constraints?
• Are instruments being excluded from proposal (dynamic constraint)?
• Are certain instruments currently not tradable?

Main benefits of our investment management software

• MiFID II compliant documentation of investments and advice
• Avoid investment restrictions violation and increase compliance
• Empower an individual investment approach winning new customers and increasing the Net Promoter Score
• Advisors have more time to spend with clients
• More complex scenarios covered

Optimization process in 3 easy steps

Our Optimization Engine applies a comprehensive optimization process that unites 3 steps within one engine:

• Parametrization of the engine
  The bank defines its product galaxy, global investment rules, model portfolios and/or expected returns. In this step, rules are created and parameterized by the bank
• Allocation strategy
  Definition of the allocation strategy including asset allocation and model portfolio. In this step, further rules are created.
• Individual allocation 
  Creation of investment restrictions as well as customer preferences and identification of the risk profile. This step is parameterized by the customer and the result is an individual investment portfolio. The customer can exclude or add asset classes (e.g. stocks).

”With Fincite.CIOS, we can manage complex portfolios automatically. This strengthens the efficiency of our consultants and helps them focus on the essentials: the customer.

Ronald Tuinenga, Product Owner Digital Investments ABN AMRO