Models

PFS provides a range of financial models, or tools, which are available for use by financial planners as well as for use by trustees of superannuation funds.

Financial Planning

Existing financial planning software has significant limitations in relation to investment volatility and other investment risks. Advice based on existing tools can be distorted and place financial advisers in a difficult position when investment returns are worse than projected.

PFS has applied its core statistical and actuarial expertise to develop a web-based solution which overcomes this and allows investment volatility and risk to be explained. This includes the use of graphical representations to help clients understand what can actually occur.

In developing this solution we have partnered with Foresight Systems, which developed the underlying simulation engine, and Cordelta, which provides IT expertise.

Standard Risk Measure (SRM)

PFS is pleased to make available our web based Standard Risk Measure model, which uses the Foresight simulation engine. This model provides a report that meets the requirements set out in the Guidance Paper. The report produced sets out the assumptions used in relation to returns, volatility, distributions, and correlations for nine asset classes, and the model allows you to specify the asset mix for each investment option.

To learn more about the model, click here. The model can also be used allowing for your Fund’s specific asset allocation and investment assumptions. For more information contact your PFS consultant, or Martin Fitzpatrick or Thach Huynh.