Contents. Introduction

Transcription

1 Getting Started

2 Introduction O&M Profiler User Guide (v6) Contents Contents... 1 Introduction... 2 Logging In... 2 Messages... 3 Options... 4 Help... 4 Home Screen... 5 System Navigation... 5 Dashboard... 6 Research... 8 Funds... 8 Portfolios and Composite Benchmarks Products With Profits Performance With Profits Ratings Combined Results Clients...38 Create New Client Client Quotes Pension Switching Drawdown Switching Investment Options Quotes Retirement Options Quotes Quick Tasks & Quick Search...55 System Wide Features...61 Glossary...62 Page 1

3 Introduction O&M Profiler User Guide (v6) Introduction O&M Profiler is a software system designed to assist with pension and investment research and justification. Unlike other general best advice systems designed to help tick the box, O&M Profiler is client, premium and product specific. It also has the capability to store and monitor client and portfolio information, set up model portfolios and produce reports. The software is supplied on a rental basis and is updated daily. The system includes a wealth of comparative data including performance, volatility, ratings and charges. There are a wide range of graphs, charts and reports available. It has been designed to be intuitive and uses similar functionality to other familiar programmes. O&M Profiler incorporates a Pension Switching facility, which is the ultimate comparison and report writing system for advisers reviewing existing individual pension contracts. O&M Profiler Professional O&M Profiler Professional is an enhanced version of the system which allows users to carry out income drawdown research, track portfolios, produce capacity for loss analysis and create their own custom products for use within Switching, Projections, Drawdown and Combined Results Quotes. The Professional version is of particular interest to advisers dealing with the post retirement market and those involved in the wrap, SIPP and group personal pension markets, where the charging structure may be unique from policy to policy. User Guide This guide has been designed to complement the help system available within O&M Profiler and will ensure you obtain the best results from the system. An electronic version of this guide is available from the O&M website together with a list of frequently asked questions. Visit for more information. Versions of O&M Profiler Some O&M Profiler features may not be available on all versions of the software, this user guide assumes you have access to the full O&M Profiler Professional system. Logging In First Time You will have been sent a welcome which includes a temporary password required to access the system. When you first login you will be prompted to change this. Before accessing the system for the first time you will need to accept the terms and conditions of the application and allow some local storage space on your computer. This is needed to deliver content in an efficient way and enhance your experience of the software. Page 2

4 Introduction O&M Profiler User Guide (v4) Subsequent Times Enter your username and password in the boxes provided and click ok. You are then taken to the home screen where you can access the many areas of the system. If you have forgotten your password or need to reset your password as you ve locked yourself out, click the Forgotten Password link. You will be sent a temporary password and prompted to change this when you next login to the system. Changing Password & Logging Out Click on the small arrow next to your user name to change your password or logout of the system. Messages When you first enter an area of the system you will receive a message in the top right corner of the screen providing information and tips relevant to the current section. You can close these messages by clicking on the small X in the top right corner of the message. Page 3

5 Introduction O&M Profiler User Guide (v4) Options The Options menu allows you to set up your system the way you want. You can add or remove selections to customise the way areas of the system are displayed. Help A number of help options can be accessed by clicking the help button in the top right of system including the system User Guide. The FAQ and How to Videos sections provide you with answers to frequently asked questions in written and video format. If you re stuck in any part of the system look for a Question Mark icon nearby to help you, there will be one in the top right of the screen and others in each section. You can also contact us through the help section by clicking on Contact Methods. Various contact details are provided and you also have the option of submitting feedback directly through the system. Page 4

6 Introduction O&M Profiler User Guide (v4) Home Screen The home screen allows you to access various areas of the system, including the main areas Dashboard, Research and Clients. System Navigation The system has been designed with ease of navigation in mind. When you select a section, a tab will appear indicating which area you are in. The tab you are currently in will be colour and the others will be grey. You can access another tab by simply clicking on it, or close it by clicking on the X in the right corner of the tab. Below the tabs, you will see the route you have taken to arrive at the area you are currently in. Page 5

7 Dashboard Dashboard Introduction The Dashboard allows you to set up information you would like to see on a regular basis. This could include information such as clients due for review or reports you have recently accessed. Alerts can also be viewed such as Fund Alerts, where there has been a change of fund manager or the rating of the fund has changed. The FCA requires firms to analyse client and adviser Management Information (MI) to ensure they're meeting their service standards and TCF requirements. The Dashboard can be set up to produce MI for users. The user can print or save the Dashboard, and view it regularly to show that MI is being monitored. MI includes rebalancing portfolios, acting on alerts or carrying out regular reviews. View Dashboard To view your Dashboard click Dashboard in the home screen then View Dashboard. When you first use the system you will be provided with a default view which you can amend to suit your needs. Each time you subsequently access your Dashboard it will appear as per your last session. Manage Dashboard You can save different Dashboards depending on the information you would like view. To save the current Dashboard, click Manage Dashboards, enter a name and click save. To view a previously saved Dashboard, click Manage Dashboard and Load Existing Dashboard. This will display a list of previously saved Dashboards to choose from. Page 6

8 Dashboard Manage Contents You can add or remove panels of information to create a bespoke Dashboard including only the information you would like to see. To do this, click on Manage Contents. The screen will rotate and provide a list of panels to include or remove. Panels currently included will show a green tick on the right of the panel name. When you hover over an item on the list, a preview of the panel will appear, helping you to decide if you would like to include it. To include a panel in your Dashboard, click on the panel name. The panel sizes can also be changed. Panels can be reordered by dragging them to your preferred location on the screen. To remove a panel, click on the small X in the top right corner of the panel. You can zoom into a panel by clicking the magnifying glass in the top right of the panel. The zoomed panel will show additional information and can also be printed in isolation. Reports To view the reports available in the Dashboard area, click the reports button. A list of available reports in PDF format will be displayed. Clicking on the report will open the document and from here you can print by clicking the print icon or save it to a file by clicking on the save icon. Page 7

9 Research Research Introduction Research is the area of the system where you can carry out extensive fund and product research and analysis. You can also create and edit Model and Investment Portfolios and Portfolio Charges which can be used in your client quotations. Funds The Funds area allows you to obtain fund and equity information ranging from Asset Allocation to Past Performance. The user friendly filter facility enables you to reduce the number of funds which appear in your search results making it easier to find the fund you are looking for. Search Area To begin your research, click Research on the home screen and then Fund Research. You can search for a specific fund via the text search function or apply criteria via the fund filters. The text search can look up sector name, manager name, fund name and ISIN number. Once you have entered your text in the search box or selected your criteria, click the search icon. The maximum number of funds which can be displayed in the search area is 500. If your search returns more than 500 results then a warning message will be displayed and no results will appear. In order to reduce the number of funds returned, you will need to apply further criteria. Page 8

10 Research The system is set up with a default set of search filters, however, if you would like to add or remove filters, then click Change Filters. A list of additional filters will be displayed. To include a filter, click on the filter name and a green tick will appear. Once you have made your selection, click on Filters. You will now be able to use these in your search criteria. Filters appear in the order in which they are added. If this is a regular search you ll be performing then you can save these search criteria for future use and also load a saved search by clicking on the save icon next to the text search box. Search Results The results are displayed in various sections. Click on the section heading to access the information you require. You can customise the sections displayed via the Options menu. In addition you can also create your own Key Fund Information section and select up to six preferred platforms for the Platform Availability section. You can sort the results by clicking the column headings. Additional filters can be applied to the search results by clicking the arrow displayed in the column heading. To display the arrow simply move your mouse to the column heading. Page 9

11 Research Quick View You can view panels of information for a selected fund using the Quick View facility. This should be enabled by default but if not you can activate it by clicking on the fund to select it and click on the grip on the right of the screen. Two panels will appear displaying information on the highlighted fund. You can use the drop down boxes to select the panels you would like to view. Once you have made your selection you can choose any fund from the search results and the panels will remain in place until you click on the grip to hide them. Fund Lists You can save the funds returned by a search as a Fund List for future use. Multiple lists can be saved and named. To save a Fund List, click the save (disk) icon in the search box. To load a single Fund List, click the save icon and select your desired Fund List. To load the results from multiple Fund Lists, use the Fund List filter. Favourite Funds If you have funds that you would to like access quickly or regularly, you can save them as Favourite Funds. Funds can be marked as favourites by right-clicking the fund directly from the search results and selecting Add to Favourites. You can also add Favourite Funds by clicking the star icon in the top left of the Fund Info screen. To view your Favourite Funds select My Favourite Funds from the Fund List filter and click the search button. Your Favourite Funds can also be accessed via your recent fund list. Page 10

12 Research Pinning Pinning allows you to keep funds returned by a search in the results grid, whilst carrying out additional research. The funds remain pinned for the current research session. To pin a fund, click the pin icon directly to the left of the fund name, the pin will turn from grey to red. This pins the fund to the top of your search results. The fund will remain pinned until you unpin it by clicking on the red pin icon or close the fund research window. You can also pin all funds by right-clicking in the results grid and selecting Pin all rows. To only view pinned funds in the results, click on clear unpinned at the bottom of the search results. Fund Dashboard When you have found the funds you are interested in, click the fund to select it. Once selected, you can access more information. The Dashboard button will become available. A series of panels detailing information on the fund selected is shown. You can manage the contents of this area in the same way as you can with your Dashboard. You can add or remove panels of information to create a bespoke Fund Dashboard including only the information you would like to see. To do this, click on Manage Contents. The screen will rotate and provide a list of panels to include or remove. Panels currently included will show a green tick on the right of the panel name. When you hover over an item on the list, a preview of the panel will appear, helping you to decide if you would like to include it. To include a panel in your Fund Dashboard, click on the panel name. The panel sizes can be changed. Panels can be reordered by dragging them to your preferred location on the screen. Page 11

13 Research To remove a panel, click the small X in the top right corner of the panel. You can zoom into a panel which will provide you with more information. The selected panel can then be printed in isolation. Manage Fund Dashboard Your system is issued with a series of default Fund Dashboards. You can save different Dashboards depending on the information you would like to look at. To save the current Dashboard, click the save icon, enter a name and click save. To view a Dashboard you have previously saved click Manage Fund Dashboards and Load Existing Dashboard. This will display a list of previously saved Dashboards to choose from. Fund vs Fund Two funds can be compared directly against each other by using the Fund vs Fund tool. Select the two funds you want to compare in the search results, by holding down the Ctrl key and clicking the two funds. The Fund vs Fund button will become available. The system will compare the two funds and display a number of panels. Page 12

14 Research Funds Comparison Any number of the funds can be compared directly against each other, by using the Funds Comparison tool. In addition, you can add in sector averages and a number of Benchmarks (including Composite Benchmarks). Select the fund(s) you want to compare in the search results by holding down the Ctrl key and clicking the fund(s). The Funds Comparison button will become available. You can customise the Funds Comparison by using the options shown in the bottom left of the screen, including: Removing funds; Including Sector Averages; Including Benchmarks. As you make your selections, the display is automatically updated. You are also able to specify the time period for the comparison. By default, Best Fit is selected which uses the largest time period available for which all selected funds have data, subject to a maximum of 5 years. 1 year, 3 year, 5 year or custom time periods can also be specified. Page 13

15 Reports To view the reports available in the Fund Research area, click the reports button. A list of available reports in PDF format will be displayed. Clicking on the report will open the document and from here you can print by clicking the print icon or save it to a file by clicking on the save icon. Page 14

16 Research Portfolios and Composite Benchmarks You can create, view, edit and print Model and Investment Portfolios, Portfolio Charges, and Composite Benchmarks by clicking Research on the home screen and then Portfolios and Composite Benchmarks. The portfolios can then be used in your client quotes and comparisons. Search Area The first screen shows a list of existing portfolios and benchmarks. You can quickly find a Portfolio or Benchmark by entering text into the search box or applying various filters and clicking the search icon. This area of the system also allows you to view and edit Client Portfolios. You can also load or save a search by clicking on the save icon. You can sort the results by clicking the column heading. A small arrow in the column heading indicates which column the results are sorted by. Quickview You can view panels of information for a selected portfolio using the Quickview facility. Two panels appear on the right displaying information on the highlighted portfolio. You can use the drop down boxes to select the panels you would like to view. Once you have made your selection you can choose any portfolio from the search results and the panels will remain in place until you click on the grip to hide them. Some panels can be used for multiple portfolio comparisons. Select the portfolios you want to compare by holding down the Ctrl key and clicking on the portfolios. Page 15

17 Research Favourites If you have portfolios and benchmarks that you would like to access quickly or regularly, you can save them as Favourites. Portfolios and Benchmarks can be marked as favourites by right-clicking directly from the search results and selecting Add to Favourites. You can also add Favourites by clicking the star icon in the top left of the Portfolio and Benchmark Info screen. Pinning Pinning allows you to keep portfolios and benchmarks returned by a search in the results grid, whilst carrying out additional research. They remain pinned for the current research session. To pin a portfolio or benchmark, click the pin icon directly to the left of the name, the pin will turn from grey to red. This pins it to the top of your search results and will remain pinned until you unpin it by clicking on the red pin icon or close the research window. You can also pin all portfolios and benchmarks by right-clicking in the results grid and selecting Pin all rows. To only view pinned portfolios and benchmarks in the results, click on clear unpinned at the bottom of the search results. Create a Composite Benchmark To create an automatically generated composite benchmark using the sector averages of a portfolio, please refer to the Create New Portfolio section of this document. To create a new Composite Benchmark, click Create Composite Benchmark. You can then enter the benchmark details and add the indices and sector averages you would like to use in the benchmark. In the Composite Benchmark Details section, enter a reference, set the status and a review date if applicable. You can also allow other users at the company to access this benchmark. In the Benchmarks section, use the Actions button to select the Indices and Sector Averages you would like to use in your Composite Benchmark. Enter the amount, in percentage terms, you would like to add to each Index or Sector Average. Page 16

18 Research Create New Model Portfolio To create a new model portfolio, click Create Portfolio and then New Model Portfolio. You can then enter the portfolio details, create a target asset allocation, research and add holdings. Enter portfolio details such as a reference, status and review date. If applicable, enter the inception date then select the target risk profile of this portfolio. Entering the inception date will help provide historical performance and enhance your portfolio tracking ability; for more information on this see the Portfolio Tracking section on page 20. After entering the funds held in this portfolio the system will calculate the current risk profile of the portfolio alongside the target you have set; for more information on this see the Capacity for Loss section on page 21. To create a target asset allocation, use the drop down boxes to select an asset class. There are three tiers of asset class and you can choose to be more specific within each class if appropriate. E.g. Equity in the first tier, UK Equity in the second tier and Small, Mid or Large Cap in the third tier. Page 17

19 search Input the percentage of the portfolio that this applies to and click Add Allocation. When 100% has been allocated, you can rotate the table by clicking the two opposing arrows in the top right of the asset allocation table. Your target asset allocation pie chart will be displayed on the left. Your current asset allocation pie chart will appear on the right. The current asset allocation chart will show in black until you add current holdings. Once existing holdings have been added you will be able to compare current with target asset allocation as shown later in this document. To view or edit the target asset allocation click Edit in the top right of the target asset allocation chart on the left. To add a fund to the portfolio click Add Fund in the top right of the holdings panel. The Fund Research area will be shown. You can search for a specific fund via the text search function or apply criteria via the fund filters. The text search can look up sector name, manager name, fund name and ISIN. Once you have entered your text in the search box or selected your criteria, click the search icon. You can save search criteria previously applied and also load a saved search by clicking on the save icon. Page 18

20 Select the funds you want to add to the portfolio (multiple funds can be selected by holding down the ctrl key) and click Add Fund To Portfolio. The currently open portfolios are displayed. Select the portfolio you want to add the funds to. After selecting the portfolio, the holdings section of the Portfolio is displayed allowing you to input the percentage you would like to allocate to the funds. To input the percentages into funds you have added to the portfolio simply click in the percentage column and enter your values. The full edit function (Double click on the fund) allows you to set the status of a fund to proposed, current or previous as well as price overrides if required. Holdings other than funds can be added by clicking Actions in the top right of the holdings panel and selecting Add Other Holding. To remove a holding from the portfolio, click the red cross to the right of the holding. Once you have reached 100% allocation, the current asset allocation pie chart will be displayed alongside the target asset allocation chart. Page 19

21 Research Click on the two opposing arrows in the top right of the current asset allocation chart; the panel will rotate and show a chart detailing the difference between the existing and target asset allocations. Additional Portfolio Actions A number of additional Actions are available from the target asset allocation and holding panels. Importing From Another Portfolio Or Client Target asset allocation and current holdings can be imported to a model portfolio from another model or client portfolio. To import target asset allocation or holdings, click Actions in the relevant panel, Holdings, then Import Holdings From and select Client or Model. A list of portfolios will be displayed. Select the portfolio you wish to import from and the target asset allocation or holdings will be added. The imported target asset allocation or holdings can then be edited accordingly. Clear All Allows you to remove all target asset classes or holdings from the selected panel. Switch Places the currently selected fund holdings into the fund search results table, to allow further analysis, research or comparisons. Add Other Holding See Create New Portfolio section. View Fund Dashboard Quickly access the fund dashboard for the selected fund. Research All Funds Places all of the fund holdings into the fund search results table, to allow further analysis, research or comparisons. Research Clean Alternative Funds including Current Holding Opens Fund Research and displays the selected fund along with the clean or unbundled versions of that fund. Create Composite Benchmark from Sector Averages Creates a Composite Benchmark using the Sector Averages of this portfolio. You can then name this composite benchmark and use it in your fund and portfolio comparison areas. Manage Portfolio History (Portfolio Tracking) You can create holdings previously held in this portfolio and it will track what the performance would have been if the holdings hadn t changed. Also, any changes made to the portfolio going forward will be automatically tracked and stored in here. Page 20

22 Research Capacity For Loss Capacity for Loss analyses the client s risk profile and provides a report highlighting the potential loss in value within a portfolio. There is no specific capacity for loss section in the system, this is dealt with as an overall concept. Entering a target risk profile in the portfolio is the starting point. Once you then enter the holdings held in the portfolio it will calculate the current risk profile. The system will use the combined volatility of the funds held as the measure of risk. You can then set the volatility time frame, the names of the risk levels and the parameters of volatility within each risk level. To do this click on options in the top right corner of your system, then select Risk Profile on the left. A capacity for loss report is then available when you click on the reports button in the portfolio. If you do not use volatility to for risk rating purposes you can choose the manual option and set the current risk against a portfolio accordingly. Create New Investment Portfolio To create a portfolio using sector groupings or a portfolio of different funds for different products, click Create Portfolio and then Create Investment Portfolio. Input basic details in the Portfolio Details section including the reference, status and adviser. To use sectors, use the Default Investments section. The sectors are placed into groupings for ease of navigation. Click on the sectors you would like to use and type in the percentage you would like to allocate to that sector. When you use this portfolio in your quote a fund will be selected for each product for each sector. You can select the criteria for choosing the default fund in the quote. Page 21

23 Research To create a portfolio using different funds for different products, use the Product Investments Section. A list of products will appear on the left and the funds available under the selected product will appear on the right. Allocate a percentage to each fund you would like to use in your preferred products. When you reach 100% allocation in each product it will turn the product green, if a product is showing in red this means you have added some funds against this product but the total does not equal 100%. Using this Investment Portfolio in your quotes will then only produce results for products you have allocated 100% to. Additional Portfolio Actions Additional Actions are available from the various sections. Clear All Allows you to remove the investments from the selected section. Importing from another Portfolio Default, Product and Fund Investments can be imported to a Portfolio from another portfolio. To import, click Actions in the relevant section, then Import Investments From. A list of portfolios will be displayed. Select the portfolio you wish to import from and the investments will be added. The imported investments can then be edited accordingly. View / Edit Existing Portfolio To view or edit a portfolio, select the desired portfolio and click the Portfolio Info button. The Portfolio Details, Asset Allocation and Holdings will be displayed. Once open you can edit the Portfolio details. The system automatically saves any changes. Page 22

24 Research Portfolio Dashboard Once selected, you can access more information on a portfolio by clicking on the Portfolio Dashboard button in your task bar. A series of panels detailing information on the portfolio selected is shown. You can manage the content of this area in the same way as you can with your Dashboard (see pages 6&7). Portfolio vs Portfolio Three portfolios can be compared directly against each other using the Portfolio vs Portfolio tool in the Portfolio Search area. Select up to three portfolios you want to compare in the search results, by holding down the Ctrl key and clicking the portfolios. The Portfolio vs Portfolio button will become available. The system will then compare the portfolios in a number of panels. Page 23

25 Research Portfolio Comparison Any number of portfolios can be compared directly against each other by using the Portfolio Comparison tool. In addition, you can add in sector averages, a number of Benchmarks, and select the preferred time period. Select the portfolio(s) you want to compare in the search results by holding down the Ctrl key and clicking the portfolio(s). The Portfolio Comparison button will become available. You can customise the Portfolio Comparison by using the options shown in the bottom left of the screen, including: Removing portfolios; Including Funds; Including sector averages; Including Benchmarks (both standard and composite). As you make your selections, the display is automatically updated. You are also able to specify the time period for the comparison. By default, Best Fit is selected which uses the largest time period available for which all selected portfolios have data, subject to maximum of 5 years. 1 year, 3 year, 5 year or custom time period can also be specified. Page 24

26 Research Create New Portfolio Charge To create a portfolio charge to use in your client quotes eg a DFM portfolio charge, click on Create Portfolio, then click on Create Portfolio Charge. Enter the basic details, such as Reference and Review Date. You can also share this Portfolio Charge with other users at your company by ticking the box in the bottom right of this section. You can then enter the portfoilio AMC and the growth rates you would like to use in the New Business Illustration page of a Pension Switching report. If you would like to apply a different portfolio charge for each product on the system, click on the Product Specific button in the top right corner of this section. It will spin around, allowing you to then input a different portfolio charge per product. To see how the portfolio charge can be used in your client quotes, please refer to any of the client quote sections in this document. Reports To view the reports available in each Portfolio area, click on the reports button in your task bar. A list of available reports will be displayed. Clicking on the report will open the document and from here you can print by clicking the print icon or save it to a file by clicking on the save icon. Page 25

27 Research Deleting a Portfolio To delete a Portfolio, open the desired Portfolio and click the delete button in the top right of the screen. You will be asked to confirm the deletion. Page 26

28 Research Products Search Area To begin your research, click Research on the home screen and then Products. You can search for a specific product via the text search function or apply criteria via the product filters. The text search can look up Product and Company name. Once you have entered your text in the search box or selected your criteria, click the search icon. You can save search criteria previously applied and also load a saved search by clicking on the save icon. Product Dashboard Once selected, you can access more information by clicking on the Product Dashboard button in your task bar. A series of panels detailing information on the product selected is shown. You can manage the content of this area in the same way as you can with your Dashboard (see pages 7&8). Page 27

29 Research Quick View You can view panels of information for a selected Product using the Quick View facility. Click on the product to select it; two panels will appear displaying information on the highlighted product. You can use the drop down boxes to select the panels you would like to view. Once you have made your selection you can choose any product from the search results and the panels will remain in place until you click on the grip to hide them. You can zoom into a panel which will provide you with more information. The selected panel can then be printed or exported (where applicable) in isolation. Product Lists You can save the products returned by a search as a Product List for future use. Multiple lists can be saved and named. To save a Product List, click the save (disk) icon in the search box. To load a single Product List, click the disk icon and select your desired Product List. To load the results from multiple Product Lists, use the Product List filter. Create A Custom Product O&M Profiler Professional is an enhanced version of the software which allows users to design and create custom products and add these to the list of products available. Examples of these products include: Self Invested Personal Pensions Wrap Accounts Group Pension Schemes Once created, these products can then be used in Client Quotes. To create a Custom Product click on Research, then Product Research then click on Create Custom Product. You can then input product details and charges. Page 28

30 Research In Basic Product Details, enter a client friendly name and company name as these will flow through to the reports you produce. If you would like to use an existing provider name, select it from the drop down list. If applicable, enter a description for the product. This should be a brief summary of the product to enable you to identify it in the future. The description you enter will not form part of the printed reports from the system. In the Premium Based Charges section enter the bid/offer spread and allocation rate for both transfer values and on-going monthly premiums. Changes to allocation rates at certain premium levels and dates can also be entered. Where the allocation rate changes for different levels of monthly premium, you can specify the changes. The amounts you enter should be the monthly premium bands and where applicable, the system will multiply these by 12 to calculate the equivalent annual premium banding. Where the allocation rate changes at certain dates this option allows you to specify a number of dates at which the allocation rate changes. For example, a charging structure may offer 100% for first 2 years, 101% for the next 2 years and 105% thereafter. If each increment (where there are escalating premiums) is treated individually for allocation periods then tick the appropriate box. Page 29

31 Research Your custom product will inherit any other funds available to the provider you selected along with their charges and growth rates. If you need to use different funds or different charges you can do so here. The Add Fund button will take you to the standard fund search where you can find, and make available to this custom product, any fund in the system. Once you have identified the fund(s) you wish to add highlight them and click the Add to Custom Product button in your task bar. If the fund you wish to use is not on O&M Profiler then chose the Add Custom Fund button. A fund will now appear in the grid and you can double click it to edit it. You can also change the frequency at which the charge is deducted and whether to enter growth rates in nominal or real terms. Click on the Fund Based Charges section to handle funds offering a reduced AMC as the fund value increases; you are able to select a number of tiers. You then specify the fund range and the reduction to the AMC (not the actual reduced AMC) that applies to each tier. You also have the ability to increase the fund ranges by a set % each year, AEI or RPI. If the AMC is charged on the whole fund then do not check the AMC is reduced at certain dates box. For example, occasionally a fund may charge 1% on the first 10,000 throughout the life of the contract and then 0.8% on the balance over 10,000. If this is the case check the "AMC is reduced at certain dates" box which will then allow you to select these dates. Page 30

32 Research In the Policy Charges section you can enter any initial and on-going fees or charges. Enter the amount of any initial fee that is charged as a monetary value, and then enter the initial policy charge where this is applied as a percentage of the transfer value. The system can handle a number of ongoing charges. These charges could be monetary amounts or a percentage of the fund. The third option is a Fund Bonus, which actually increases the value of the fund by a certain percentage. When adding On-going Charges / Bonuses, you need to specify the number of different levels that apply and then confirm the amounts, frequency and basis upon which they are made. Once created, custom products are available for use within Pension Switching, Investment Options, Retirement Options, Drawdown Switching and Combined Results Profiles. Page 31

33 Research With Profits Performance With Profits Performance provides a wealth of information on bonus rates and performance history. The system has the ability to produce comparisons between products and the average rate as tables or charts. Terminal bonus rates are not available from Pensions Profiler. In addition you can review the performance history of with profits products by viewing the maturity values for personal pension contracts. The results for both regular and single premiums are available over various periods. Search Area To begin your research, click Research on the home screen and then With Profits Performance. You can search for a specific product via the text search function or apply criteria via the product filters. The text search can look up Product and Company name. Once you have entered your text in the search box or selected your criteria, click the search icon. Quick View You can view panels of information for a selected Product using the Quick View facility. Click on the product to select it and click on the grip on the right of the screen. Two panels will appear displaying information on the highlighted product. You can use the drop down boxes to select the panels you would like to view. Once you have made your selection you can choose any product from the search results and the panels will remain in place until you click on the grip to hide them. You can zoom into a panel which will provide you with more information. The selected panel can then be printed or exported (where applicable) in isolation. With Profits Ratings The quality of with profits funds is notoriously difficult to quantify. An amount of actuarial training and in depth analysis would be required for an adviser to be able to fully understand the issue. It is not practical for every adviser to research this individually and it is for this reason that the data included in Pensions Profiler has been sourced from a leading actuarial consultancy. For both open and closed funds, AKG Actuaries & Consultants Limited supplies star ratings for: Financial Strength Future Performance Transparency Page 32

34 Research Pensions Profiler User Guide (v8) In addition, a large amount of detailed commentary is provided to assist both the adviser and their client to better understand the quality of a with profits fund. This data is hugely useful when considering: A new business investment into a with profits fund Whether it is in the client s best interest to switch out of their existing with profits fund Search Area To begin your research, click Research on the home screen and then With Profits Ratings. You can search for a specific fund via the text search function or apply criteria via the fund filters. The text search can look up Funds and Company name. Once you have entered your text in the search box or selected your criteria, click the search icon. Quick View You can view panels of information for a selected Fund using the Quick View facility. Click on the fund to select it; two panels will appear displaying information on the highlighted fund. You can use the drop down boxes to select the panels you would like to view. Once you have made your selection you can choose any fund from the search results and the panels will remain in place until you click on the grip to hide them. You can zoom into a panel which will provide you with more information. The selected panel can then be printed or exported (where applicable) in isolation. Combined Results Combined Results uses an area graph to indicate the competitive position of individual products relative to others in O&M Profiler. Search Area To begin your research, click Research on the home screen and then Combined Results. You can search for an existing Combined Results quote via the text search function or apply criteria via the quote filters. Once you have entered your text in the search box or selected your criteria, click the search icon. Page 33

35 Research Pinning Pinning allows you to keep quotes returned by a search in the results grid, whilst carrying out additional research. The quotes remain pinned for the current research session. To pin a quote, click the pin icon directly to the left of the quote name, the pin will turn from grey to red. This pins the quote to the top of your search results. The quote will remain pinned until you unpin it by clicking on the red pin icon or close the Combined Results research window. You can also pin all quotes by right-clicking in the results grid and selecting Pin all rows. To only view pinned quotes in the results, click on clear unpinned at the bottom of the search results. Create New Combined Result To create a new combined Result quote, click Create New Combined Result. You can then enter the quote information in the sections provided. The quote type section allows the user to establish the basis of the comparison. The term and premium levels used are fixed, although these can be customised when using the Professional Version. Select the Quote Type, Escalation Rate and Base Growth Rate you would like to use. Page 34

36 Research Page 35

37 Research The adviser charging basis can be chosen independently for single or regular premiums and for initial and on-going charges. Select the appropriate charging basis from the drop down lists. Please note this section is optional and will automatically use your default adviser charging set up you have created in the options area. In the Select Investments section you can select specific funds for this quote or use Sector Defaults which will automatically select a default fund for each sector chosen. You can also select your model and investment portfolios you have previously set up. To add specific funds to the comparison click on the Select Funds button in the top right corner of the Select Investments section. The Fund Research area will be shown. You can search for a specific fund via the text search function or apply criteria via the fund filters. The text search can look up sector name, manager name, fund name and ISIN number. Once you have entered your text in the search box or selected your criteria, click the search icon. Page 36

38 Research Select the funds you want to add to the quote (multiple funds can be selected by holding down the ctrl key) and click Add to New Investment. The currently open quotes are displayed. Select the quote you want to add the funds to. After selecting the quote it will take you back into that area allowing you to input the percentages into each fund. To use a previously created Model Portfolio, click on actions then hover your mouse over import. Select the portfolio to import the holdings from, with or without their percentages pre-populated. You then have the option to select the priority order for which version of the selected funds will be used in quotes in order to maximise results. Please note if you have chosen the provider insured version of the fund then this will only produce results for that provider. To use Sector which will automatically select a fund for each sector chosen or to use a previously created Investment Portfolio, click on the Use Sector Defaults button in the top right corner of the Select Investments section. Page 37

39 Research The sectors are placed into groupings for ease of navigation. Click on the sectors you would like to use and type in the percentage you would like to allocate to that sector. To use a previously created Investment Portfolio, click on Investment Portfolios in the Sector Groupings column on the left. Apply a percentage allocation to the portfolio you would like to use on the right. You then have the option to select which type of fund you would like to use from the drop down list provided. Any combination across sector groupings must equal 100%. The Select Products section allows you to select the products you would like to include in the comparison. You can search for a specific product via the text search function or apply criteria via the product filters. The text search can look up product and company name. Once you have entered your text in the search box or selected your criteria, click the search icon. All products are automatically selected for comparison. Page 38

40 Research In the Results section an area graph will be produced for the product you have highlighted. The vertical axis represents different premium levels, whilst the horizontal axis displays the term in years. Due to the large number of calculations involved in producing the comparison, the results may take a few moments to be displayed. You can zoom into the results panel which can then be printed or exported in isolation. Page 39

41 Clients & Client Quotes Clients Introduction O&M Profiler allows you to store client information enabling you to produce various client quotes and reports. My Clients You can create, view, edit, and print Client quotes and reports by clicking Clients on the home screen and then My Clients. Search Area To begin your Client work, click Clients on the home screen and then My Clients. The Client Search screen shows a list of existing clients, which you can then produce reports, quotes and edit. You can search for a specific client via the text search function or apply criteria via the client filters. Once you have entered your text in the search box or selected your criteria, click the search icon. You can also load or save a client search by clicking on the save icon. You can sort the results by clicking a column heading. A small arrow in the column heading indicates which column the results are sorted by. Favourite Clients If you have clients that you would like access quickly or regularly, you can save them as Favourite Clients. Clients can be marked as favourites by right-clicking the client directly from the search results and selecting Add to Favourites. You can also add Favourite Clients by clicking the star icon in the top left of the Client Info screen. Your Favourite Clients can be accessed via your recent clients list. Pinning Pinning allows you to keep clients returned by a search in the results grid, whilst carrying out additional research. The clients remain pinned for the current research session. Page 40

42 Clients & Client Quotes To pin a client, click the pin icon directly to the left of the client name, the pin will turn from grey to red. This pins the client to the top of your search results. The client will remain pinned until you unpin it by clicking on the red pin icon or close the client search results window. You can also pin all clients by rightclicking in the results grid and selecting Pin all clients. To only view pinned clients in the results, click on clear unpinned at the bottom of the search results. View/Edit Existing Client To view or edit a client, select the desired client and click the Client Info button. Once open you can edit the client details. The system automatically saves any changes. Deleting a Client To delete a Client, open the desired Client and click the delete button in the top right of the screen. You will be asked to confirm the deletion. Client Dashboard Once selected, you can access more information on a client by clicking on the Dashboard button in your task bar. A series of panels detailing information on the client selected is shown. You can manage the content of this area in the same way as you can with your Dashboard (see pages 6&7). Create New Client To create a new client, click Create New Client. You can then enter the client s personal details, current plans and portfolios, and create client quotes. To add a current plan or portfolio for this client click on Create New Portfolio in the top right hand corner of the Current Plans/Portfolios section. A new tab heading will open up allowing you to input the current plan/portfolio details and add the holdings, including Product and Provider. Page 41

43 Clients & Client Quotes If applicable, enter the inception date then select the target risk profile of this portfolio. Entering the inception date will help provide historical performance and enhance your portfolio tracking ability; for more information on this see the Portfolio Tracking section on page 20. After entering the funds held in this portfolio the system will calculate the current risk profile of the portfolio alongside the target you have set; for more information on this see the Capacity for Loss section on page 21. There are two ways to add funds to this portfolio; the first way is to click on add fund in the top right hand corner of the holdings section. See page 17 for further information. The alternative way to add a fund to a portfolio it to click on Quick Add in the holdings section. A list of funds available under the Provider selected will then be displayed. Once you have found each of the client s funds, type in the number of units held next to each fund. Holdings other than funds can be added by clicking Actions in the top right of the holdings panel and selecting Add Other Holding. The holding section of the portfolio is displayed allowing you to input additional holding information. Page 42

44 Clients & Client Quotes To remove a holding from the portfolio, click the red cross to the right of the holding. Additional Portfolio Actions A number of additional Actions are available from the Holdings section. See page 20 for more information. Capacity For Loss Capacity for Loss analyses the client s risk profile and provides a report highlighting the potential loss in value within a portfolio. There is no specific capacity for loss section in the system, this is dealt with as an overall concept. Entering a target risk profile in the portfolio is the starting point. Once you then enter the holdings held in the portfolio it will calculate the current risk profile. The system will use the combined volatility of the funds held as the measure of risk. You can then set the volatility time frame, the names of the risk levels and the parameters of volatility within each risk level. To do this click on options in the top right corner of your system, then select Risk Profile on the left. A capacity for loss report is then available when you click on the reports button in the portfolio. Client Quotes To create a new quote for your client, click on the Quotes section then click on the Create New Quote button in the top right corner of this section. You can then select which type of quote you would like to produce for your client. You can also create a copy of an existing client quote which will save you time if you want to alter the quote and still keep a copy of the previous version. To do this, click on the quote you would like to take a copy of, then click on actions. Click on the Create a copy of the selected quote button. This will then produce a cloned version of the quote in your quotes list. Page 43

45 Clients & Client Quotes Pension Switching The Switching facility in O&M Profiler is an analysis and report writer designed to assist when reviewing existing pension policies. The Switching facility allows you user to compare up to 9 existing pension plans on a consolidated basis with other arrangements currently available. Each plan is also compared individually. Throughout the system an exclamation mark is shown against each section which requires full completion in order to produce an accurate comparison. This will disappear once the section in complete. If you re unsure why the warning is there, hover your mouse pointer over the triangle to see the reason. Quote Details Complete the Quote Details section with a reference, status and any comments if applicable. This will help you to identity the quote in future. Current Plans/Portfolios The Current Plans section allows you to enter the quote details of the client s existing plans. These can be found on the benefit statement obtained from the existing provider. You are first taken into the Current Plans/Portfolios List. From here you can select or create the Client s current plans to use in this Switching quote. To select, click on Select Portfolios in the top right hand corner of this section, then choose to select all portfolios or you can select specific portfolios. This will bring through the current plan and portfolio information already created for this client. If you need to create a client s current plan at this stage, click on the Create New Plan/Portfolio Button. Up to 9 plans can be analysed per client quotation. If you wish to include the plans in a consolidated comparison ensure the Include in Consolidated Report box is checked. If you wish to remove a plan from the comparison click on the small red x to the right of the Current Plan. Double click on each current plan/portfolio and input the quote details. Page 44

46 Clients & Client Quotes Type in the retirement age, current value, transfer value and as at date as displayed on the benefit statement. Select the projected maturity value basis as per the benefit statement. There are 4 ways of entering maturity values supplied. Monetary Rates Supplied - This is the monetary value of the plan at maturity with no deduction for inflation. Inflation Adjusted Rates of Return The rates provided will have been adjusted to take account of inflation. Therefore, the maturity values will be expressed in today s prices. SMPI Rates Supplied The maturity values provided have been supplied in today s prices but the growth rates are before inflation has been taken into account. Estimated by the System - Where you have not been given a projected maturity value by the existing provider you can input an annual management charge and the system can give you an estimated projection. However, this is not recommended as a compliant method of projecting. You then need to select the growth rates provided by the existing plan provider. If the existing provider has not used industry standard growth rates select Fund Specific Growth Rates from the Growth Rates drop down box. This will allow you to then manually enter the growth rates and these will be used as the projection rates for the new plans giving a like for like comparison. Where the existing provider uses multiple growth rates for individual funds and does not provide an overall weighted growth rate, there is a calculator function available once you select Fund Specific Growth Rates. You can manually input the fund names, allocation and growth rates provided and this will calculate the weighted growth rate and apply this to the comparison. Page 45

47 Clients & Client Quotes New Investment In the New Investment section you can select specific funds for this quote or use Sector Defaults which will select a fund for each sector chosen. You can also select your model and investment portfolios you have previously created. To select specific funds for the comparison click on the Select Funds button in the top right corner of the New Investments section. The Fund Research area will be shown. You can search for a specific fund via the text search function or apply criteria via the fund filters. The text search can look up sector name, manager name, fund name and ISIN number. Once you have entered your text in the search box or selected your criteria, click the search icon. Select the funds you want to add to the quote (multiple funds can be selected by holding down the ctrl key) and click Add To New Investment. The currently open quotes are displayed. Select the quote you want to add the funds to. After selecting the quote it will take you back into that area allowing you to input the percentages into each fund. To use a previously created Model Portfolio, click on actions then hover your mouse over import. Select the portfolio to import the holdings from. You then have the option to select the priority order for which version of the selected funds will be used in quotes in order to maximise results. Page 46

48 Clients & Client Quotes Please note if you have chosen the provider insured version of the fund then this will only produce results for that provider. To use Sector Defaults click on the Use Sector Defaults button in the top right corner of the New Investment section. The sectors are placed into groupings for ease of navigation. Click on the sectors you would like to use and type in the percentage you would like to allocate to that sector. To use a previously created Investment Portfolio, click on Investment Portfolios in the Sector Groupings column on the left. Apply a percentage allocation to the portfolio you would like to use on the right. You then have the option to select which type of fund you would like to use from the drop down list provided. Any combination across sector groupings must equal 100%. Page 47

49 Clients & Client Quotes A number of additional Actions are available from the new investment section. Add Funds/Holdings Opens Fund Research allowing you to search for funds you would like to recommend. Once you have found the funds, select them, then click on Add to New Investment. Importing Funds From a Model Portfolio Funds can be imported to a quote from a model portfolio. To import funds, click Actions, Import Funds From and select the portfolio. The imported funds can then be edited accordingly. Research Funds Places all of the fund holdings into the fund search results table, to allow further analysis, research or comparisons. Clear All Allows you to remove all funds from the New Investment section. Add Portfolio Charge If you would like to apply an overall portfolio charge already created on the system, select this action then select the charge you would like to use. Add Alternate Fund Occasionally you may wish to select an alternate fund to be used in the case where a product does not offer the original fund selected. If the product does not offer the original fund selected then they will be omitted from the results. To select an alternate fund click on Actions then Add Alternate Fund. This will then open up the Fund Research area allowing you to search for the alternate fund to add. Once you have found this fund, click on it to highlight it then click on Add Alternative Fund To Quote. Use Sector Defaults Allows you to use Sectors instead of specific funds. You can also access any previously created Investment Portfolios in here. Adviser Charges The adviser charging basis can be chosen independently for single or regular premiums and for initial and on-going charges. Select the appropriate charging basis from the drop down lists. Please note this section is optional and will automatically use your default adviser charging set up you have created in the options area. Page 48

50 Clients & Client Quotes New Plan The New Plan section allows you to select the products you would like to include in the comparison. You can search for a specific product via the text search function or apply criteria via the product filters. The text search can look up Product and Company name. Once you have entered your text in the search box or selected your criteria, click the search icon. All products are automatically selected for the comparison. Notes The system is supplied with pre-formatted notes relating to various pension issues. To include a system supplied note in your switching report check the box on the right side of the note under the Include in Report column. To create your own note, click on the Add Note button in the top right corner of the Notes section. Page 49

51 Clients & Client Quotes Results The results section produces a detailed charge based comparison of the client s existing pension plans against the products selected. Where applicable, there will be a consolidated results section, and further results sections for comparing individual plans. All results assume that the accumulated fund and on-going contributions, if applicable, are placed with a new provider. As detailed earlier only plans that have the Include in Consolidated Report box checked, will be included in the consolidated results. In each set of results there are five tab headings focussing on certain information you would like to display, click on the tab headings to view this information. The My Switching Results tab heading can be customised in the options area of the system allowing you to create a bespoke set of results columns. The results are automatically sorted by the mid growth rate column and your client s existing plans will appear in the grid. However, you can sort the results by a different column heading by clicking on it. In the top right hand corner of the results section is an Actions button, which allows you to find out more information and make adjustments to any of the products. Create Investment Portfolio This will automatically create a new investment portfolio with the fund details automatically entered. Therefore you can very quickly create an investment portfolio from the quote. For further information on Investment Portfolios, please see page 21. Create Client Portfolio This will create a proposed Client portfolio with the reference, product and fund details automatically entered. Therefore, if you make a decision to recommend a new plan to your client you can very quickly create a portfolio from the quote. For further information on Client Portfolios, please refer to the Create New Client section of this document on page 39. Page 50

52 Clients & Client Quotes Adjust the selected Product This option allows you to make alterations to the selected product directly from the results screen. Products which have had adjustments made can be identified in the results screen by an a after the position number. It is possible to make adjustments in three areas. The funds being used in the comparison for the selected product can quickly be changed via the Adjust the selected Product link. In the funds section you can sort by the fund name, sector name or % applied to help find the funds you are looking for. Once you have found the funds, click on each one in turn and type in the percentage. Once you start making changes the Enable Fund Overrides box is automatically checked. Un-checking this box allows you to quickly revert back to the original results without having to clear and re-enter the investment splits. The Tiering section allows you to include an existing fund in the comparison and take advantage of any tiered fund charges which apply to the product. If an existing fund value is entered O&M Profiler will use it when considering any tiering bands or charges in the comparison. View Quote Info This link will provide you with all the details we have taken into account when producing the projection quote such as charges, any special offers, loyalty bonuses etc. View Funds Used This link will provide you with a list of the funds used in the projection for the selected product. It will also provide you with some fund information such as Compound Annualised Returns (CAR) and Annual Management Charges (AMC). Page 51

53 Clients & Client Quotes View Yearly Transfer Values For the selected product this link will provide you with a breakdown of the yearly transfer values until maturity. Alongside this will be columns detailing the impact of both product and adviser charges. View Product Dashboard This is a shortcut to take you straight to the Product Dashboard for the selected product. In this area a series of panels detailing information on the product selected is shown. You can manage the contents of this area to make it bespoke to your requirements. For more information on this area see the Product Dashboard section under Product Research on page 27. View PUP and Redirection The results will be displayed assuming that the existing plans have been made paid up and that all future contributions are placed in an alternative arrangement. Drawdown Switching The Drawdown Switching facility is an analysis and report writer designed to assist when reviewing an existing drawdown policy. To enable a Switching Report to be produced it is recommended that the following information is obtained from the existing provider: A benefit statement showing the projected fund value Income details, such as income amount, GAD rate etc (if applicable) Drawdown Review date Details of the current investment funds The current policy value and transfer value The Drawdown Switching facility is similar to the Pension Switching facility, with many sections being identical. Throughout the system an exclamation mark is shown against each section which requires full completion in order to produce an accurate comparison. This will disappear once the section in complete. Quote Details Please refer to Pension Switching on page 42 for more information. Current Plans/Portfolios The Current Plans section allows you to select the client s current drawdown plan to use in your drawdown quote. Please refer to Pension Switching on page 42 for more information. Page 52

54 Clients & Client Quotes Income In the Income section, enter the current plan income details such as annuitisation age, income style, review date and details of any continuing contributions. New Investment Please refer to Pension Switching on page 44 for more information. Adviser Charges Please refer to Pension Switching on page 46 for more information. New Plan Please refer to Pension Switching on page 47 for more information. Results The results section produces a detailed charge based comparison of the client s existing projected drawdown benefits alongside the projection details of the new plans. The results are broken down into various tab headings focussing on certain information you would like to display, click on the tab headings to view this information. The results are automatically sorted in order of highest projected maturity value at the mid growth rate, however, you can sort the results by a different column heading by clicking on it. In the top right hand corner of the results section is an Actions button, which allows you to find out more information and make adjustments to any of the products. Please refer to Pension Switching on page 48 for more information. Page 53

55 Clients & Client Quotes Investment Options Quotes The Investment Options quoting facility in O&M Profiler is a comparison tool designed to assist when producing various investment quotes such as Personal Pensions, Investment Bonds, Cash Accounts and NISAs. It allows you to input the client s details along with the quote details and produces a comparison of the selected products. You can produce up to three variations within one quote. Throughout the system an exclamation mark is shown against each section which requires full completion in order to produce an accurate comparison. This will disappear once the section in complete. Quote Details Please refer to Pension Switching on page 42 for more information. Quote Type The Quote Type section allows you to enter the different quotes which can be run simultaneously. Input the details for each quote. A minimum of one quote type must be entered. Shortfall If you are performing a targeting quote you can include information about any existing pension arrangements to calculate the premiums required to make up any shortfall. For Target Pension and Target Salary the amounts should be entered in today s terms, for Target Amount these values are in nominal terms. Select Investments For any Investment based quotes, enter the investment details. Please refer to Pension Switching on page 44 for more information. Adviser Charges Please refer to Pension Switching on page 46 for more information. Different Adviser Charging shapes can be chosen for different product types. Select Products Please refer to Pension Switching on page 47 for more information. Results A set of results for each quote will be produced, displaying the details for the quote bases selected. Click on a product in each results grid and a chart will be produced illustrating the products alongside each other. Page 54

56 Clients & Client Quotes The results are automatically sorted in order of highest projected maturity value, however, you can sort the results by a different column heading by clicking on it. In the top right hand corner of the results section is an Actions button, which allows you to find out more information and make adjustments to any of the products. Please refer to Pension Switching on page 48 for more information. An Investment Options report can be generated detailing all three options selected. Retirement Options Quotes The Retirement Options quoting facility in O&M Profiler is a comparison tool designed to assist when producing various at retirement quotes such as Annuities & Drawdown Projections. It allows you to input the client s details along with the quote details and produces a comparison of the selected products. You can produce up to three variations within one quote. For Annuity quotes the figures are generated via Assureweb and you will need an Assureweb username and password to access this area. Throughout the system an exclamation mark is shown against each section which requires full completion in order to produce an accurate comparison. This will disappear once the section is complete. Quote Details Please refer to Pension Switching on page 42 for more information. Current Plans/Portfolios The Current Plans section allows you to select or create the client s current pension plans to use in your at retirement quote. Please refer to Pension Switching on page 42 for more information. Quote Type The Quote Type section allows you to enter the different quotes which can be run simultaneously. Page 55

57 Clients & Client Quotes Input the details for each quote. A minimum of one quote type must be entered. Life Basis For an Annuity quote enter the life basis for the client including post code, health status, smoker status and dependant s details if applicable. Select Investments For any Investment based quotes, enter the investment details. Please refer to Pension Switching on page 44 for more information. Adviser Charges Please refer to Pension Switching on page 46 for more information. Different Adviser Charging shapes can be chosen for different product types. Results A set of results for each quote will be produced, displaying the details for the quote bases selected. Click on a product in each results grid and a chart will be produced illustrating the products alongside each other. The results are automatically sorted in order of highest projected maturity value; however, you can sort the results by a different column heading by clicking on it. In the top right hand corner of the results section is an Actions button, which allows you to find out more information and make adjustments to any of the products. Please refer to Pension Switching on page 48 for more information. A Retirement Options report can be generated detailing all three options selected. Page 56

58 Clients & Client Quotes Quick Tasks & Quick Search We have created some short cuts to enable you to carry out popular tasks quickly. Click on Quick Tasks and a list of popular tasks will appear. Click on the Task you would like to carry out. These Quick Tasks and some additional options are available from any screen by selecting the Quick Tasks button in the main menu bar in the top left. Quick Search, will allow you to quickly find any clients, portfolios, quotes, reports or products from the home screen. Type the details in the search box, then click on the search icon. Page 57

59 Reports Reports A key benefit of Pensions Profiler is the powerful reporting options that are available. Reports can be printed or saved from directly within the system. To view the reports available for the area you are working on, click on the reports button on your task bar. A list of available reports will be displayed. Clicking on the report will open the document and from here you can print by clicking the print icon or save it to a file by clicking on the save icon. Report Name Description Accessible From Annuity Comparison Prints the details currently displayed for the comparison results. Retirement Options Quote Results Calculation Summary Sheet Provides details of all data used to produce the calculation. Investment Options Comparison Results Pension Switching Comparison Capacity for Loss Client Results (Current View) Produces a detailed review of the client s portfolio(s) and their capacity for loss. Prints the details currently displayed, for the client search results. Results Portfolio Search Results Portfolio Info Client Info Client Search Results Combined Results (Current View) Combined Results Profile Report Comparison Results (Current View) FCA Suitability Assessment Fund Overview Fund Results (Current View) Funds Comparison Prints the details currently displayed, for the combined results search. Prints out the Combined Results quote information and area chart for the product selected. Prints the details currently displayed for the comparison results. Produces a pre populated FCA Suitability Assessment Document, detailing the information for the existing plans and the new plan being recommended. Provides key information for the selected fund. Prints the details currently displayed, for the fund search results. Provides a comparison of the performance and volatility of the selected funds. Combined Results Search Combined Results Info Investment Options Comparison Results Pension Switching Comparison Results Retirement Options Comparison Results Pension Switching Comparison Results Fund Search Results Fund Search Results Funds Comparison Page 58

60 Reports Fund Factsheet Fund vs Fund Income Drawdown Growth Report Income Drawdown Capped Report Income Drawdown Flexible Report Investment Bond Report Information on Fund selected, including performance, objective and asset allocation. In depth comparison of two funds alongside each other. Produces an in depth analysis of the Drawdown Product you are recommending. This report is available if no income is required. Produces an in depth analysis of the Drawdown Product you are recommending. This report is available if Capped income is required. Produces an in depth analysis of the Drawdown Product you are recommending. This report is available if Flexible income is required. Produces an indepth analysis of the Bond Product you are recommending. Fund Research Fund Dashbooard Portfolio Info Fund vs Fund Fund Research Retirement Options Comparison Results Retirement Options Comparison Results Retirement Options Comparison Results Investment Options Comparisons Results Investment Options Lifetime Annuity Options Report Produces a report comparing multiple Investment Options such as Pensions, ISAs and Cash. Produces an in depth analysis of the three Annuity options you have chosen. Investment Options Comparison Results Retirement Options Comparison Results Portfolio Comparison Portfolio Details Portfolio Factsheet Portfolio History Portfolio Results (Current View) Provides a comparison of the performance and volatility of the selected portfolio. Provides information for the selected portfolio. Information on Portfolio selected, including performance, top ten holdings and asset allocation. Displays any changes to the portfolio eg Fund Switches Prints the details currently displayed, for the portfolio search results. Portfolio Comparison Portfolio Search Results Portfolio Info Portfolio Search Portfolio Dashbooard Portfolio Info Client Info Portfolio Search Portfolio info Client info Portfolio Search Results Portfolio Summary Portfolio vs Portfolio Product Features Product Information Product Sourcing Reviews historic performance of the portfolio in it s present state. In depth comparison of up to three funds alongside each other. Details the criteria the plan selected does and does not meet. Provides information on the product selected such as Financial Strength. Details the criteria used to filter suitable products. Portfolio Search Portfolio info Client info Portfolio Search Portfolio vs Portfolio Product Search Results Product Dashboard Product Search Results Product Dashboard Product Search Results Page 59

61 Reports Product Summary Sheet Quote Request From Rebalancing Report Retirement Options Stakeholder Comparison Switching Report With Profits Bonus Rates Provides key information for the selected product. Quote Request template which is prepopulated with the quote details and can be ed to providers. Compares the portfolio s asset allocation alongside it s target asset allocation, highlighting any variances. Produces a report comparing multiple Retirement Options such as Income Drawdown and Annuities. Compares the recommended plan alongside a Generic Stakeholder plan using the recommended plan s growth rates and assuming no adviser charging. Produces an In Depth comparison of the client s existing Pension Plans alongside the recommended plan. Provides the Bonus Rate information for the products displayed in the search area. Investment Options Comparison Results Product Comparison Results Investment Options Comparison Results Pension Switching Comparison Results Portfolio Search Portfolio info Client info Retirement Options Comparison Results Investment Options Comparison Results Pension Switching Comparison Results Pension Switching Comparison Results With Profits Performance Search With Profits Fund Report With Profits Fund Results (Current View) Provides information on the fund selected such as Performance and Products Covered. Prints the details currently displayed, for the with profit fund search results. With Profits Ratings Fund Search Results With Profits Ratings Fund Search Results With Profits Performance History Provides the Performance History information for the products displayed in the search area. With Profits Performance Search Page 60

62 System Wide Features Editable Reports Users of our O&M Profiler Professional system now have access to editable versions of some of our reports. Simply select the report as you would normally but choose the version which ends Editable. When the report loads you can save or print or you ll see a new option in the menu bar A new menu appears which will allow you to make changes to the report This is designed to allow you to make minor amendments to the report and add your own wording to suit your needs. You can change the report name and sidebar formatting from the Insert Menu. In this section you can also create Company Notes. These are simply blocks of text which you can enter and reuse again and again, you can also share these with the rest our your company to allow a consistent style regardless of user. To add a note simply click on the Company Note button enter your note and close, if you wish to share it tick the box to allow this. To use the note in a report simply move to the part of the report where you want to insert the text and select your note from the Company Note section. You can insert images from this menu also, including any charts you may have earlier exported from O&M Profiler. When you are happy with your changes you can save as a PDF or print. This editor is designed for minor tweaks and customisations, if you prefer to make wholesale changes to the report then you should choose Save then Save to word from the editor or switch back to the viewer and choose the Save to Word icon and use Microsoft Word or similar to make your changes. This version of the report does not include the sidebar and branding. Page 61

63 System Wide Features Previously generated reports Within a client you can load any previously generated reports to review or, if they are editable versions, resume any alterations you were making to the reports. Once enabled in the options this appears as an additional section under the client workspace. Double click on the report in question to reopen it within the system. Page 62

64 System Wide Features System Wide Features Exporting Charts All charts produced in O&M Profiler can be exported and saved as an image which can be used in other documents. To export a chart, expand the panel you wish to export by clicking the magnifying glass in the top right of the panel. Arrange the panel to the size and shape you prefer and then click the Export Chart button at the bottom of the expanded panel. A dialogue box is displayed allowing you to save the chart as an image to a location of your choice. Once saved, the image can be inserted into other programmes. Recent Items The system allows you to quickly access recently viewed clients from the home screen. As you use the system, the lists automatically update. Page 63

65 Glossary A Glossary ABI Sector The ABI Sectors are a system for the classification of life and pension funds. An ABI Sector is assigned for a fund based on the investments it holds. Funds in the same sector will often hold similar investments and have similar objectives. Active Management When a fund manager uses his own judgement to decide what shares to buy or sell rather than following an index. The opposite is known as passive management or index tracking. Alpha Alpha represents the over or under performance of an investment relative to its benchmark. It is based on the past performance of the fund and its historic market sensitivity. A positive alpha indicates the fund has outperformed in the past. Alternative Investment Market (AIM) A stock market launched in June 1995 in London for smaller growing companies which would not normally qualify for listing on the main market. Annual Management charge (AMC) A fee, usually expressed as a percentage, charged by the investment manager to cover the costs of running the fund. It is deducted from the net assets of the fund. Also Known As: Management Fee Annualised Fund Performance This represents the conversion of the cumulative performance of an investment into a yearly rate. It is a hypothetical rate of return that, if achieved annually, would have produced the same cumulative return if performance had been constant over the entire period. Also Known As: CAR Asset Allocation Asset allocation is the spread of an investment across various asset classes such as equity, bonds and property. Asset Class Asset classes are broad investment categories that offer differing levels of risk and return, such as equity, bonds, property and cash. B Basis Point (bps) One one-hundredth of 1% (0.01%). Used to measure changes in interest rates. For example, a change in interest rates from 6.25% to 6.75% would be an increase of 50 basis points. Page 64

66 Glossary Batting Average Batting Average is a measure of a fund manager s ability to consistently beat the market. The batting average gives a percentage figure for the number of months in which the fund s performance is better than its benchmark. Bear Market Market is in decline and is often created by the bears, the market pessimists, with the opposite being a bull market. Benchmark An index against which a fund measures its performance. Funds typically compare their performance against indices such as the FTSE 100 or the S&P 500. Best and Worst Three Months The best three months represents the highest total return a fund has achieved in a consecutive three month period. The worst three months represents the lowest total return a fund has achieved in a consecutive three month period. Both figures are calculated using all monthly performance data for a fund available. In most cases this will be since the funds launch date. Beta This is a measure of the volatility of the fund relative to its benchmark. A figure greater than 1 indicates that the fund will tend to outperform in a rising market and under perform in a falling one. I.e. is more volatile than the market. The reverse applies to a Beta of less than 1. Bid-offer spread (fund) The difference between the bid price - the price at which units or shares are sold back to the fund manager - and the offer price - the price at which they are bought from the manager. Fund management companies use this difference to pay dealing costs, stamp duty and for their profit margin. Blend Stock A blend stock is one which lies between growth and value stocks. Bond An IOU issued by a company or the government (GILTs). During the life of the bond, the bondholder receives regular interest payments based on the coupon rate. On maturity the loan is repaid. Certain exceptions apply such as zero coupon bonds, which provide no interest payments, but are issued at a discount. Not to be confused with: Investment Bond An investment and insurance product, Savings Bond - A fixed term savings account Bond Credit Quality See: Fixed Income Credit Quality Bond Funds A portfolio which invests mainly in bonds with the aim of providing a steady stream of income to investors. The value of bond funds tends to be inversely linked to interest rate changes. Page 65

67 Glossary Bull Market Market is on an upward motion, driven by the Bulls, the market optimists, the opposite to the bears. Often driven by positive economic news and strong earnings figures, from major firms. Buy and Hold Strategy A method of investment which involves purchasing shares and keeping them for a relatively long period. By definition it entails a low turnover. The opposite technique is sometimes known as a trading strategy. C CAR Compound Annualised Rate of Return. See: Annualised Fund Performance Closed-Ended Funds Closed-ended funds, such as investment trusts, are divided into a finite number of shares. The shares trade on the London Stock Exchange with prices rising or falling based on investor sentiment. Investors buy shares at a Premium to NAV or a Discount to NAV of the net asset value (NAV) of the fund. Also See: Investment Trust Collective Investment See: Mutual Fund Commission This has a number of meanings, but the two likely ones are the charge levied by a broker for buying or selling shares on your behalf. The fee can vary depending on the size of the order and the degree of advice you received. The monetary amount the provider of the product or fund pays to your financial adviser for arranging the plan. Commodity A physical substance, such as metals, which investors can buy or sell, usually through Future contracts. The price of a commodity is subject to that of supply & demand with the price of oil rising substantially, when conflicts arise in the Middle East. Convertible Bond A company issued bond that may be converted into shares in that company during the life of the bond for a pre-stated price. The decision to convert may rest with either the issuer of the bond or the investor but is not obligatory. Corporate Bond A bond issued by a corporation to an investor as a means of raising money. The par value, otherwise known as face value, of the bond is repaid when the bond matures. In addition, interest is paid at set intervals and the bonds can be traded on major exchanges. Because bonds are taxable, they are also offered in tax wrappers such as ISAs (Individual Savings Accounts). Coupon (Bond) The fixed percentage that is paid out on a regular basis on a fixed-income security. Page 66

68 Glossary Cumulative Returns This represents the total returns of a fund over a given time period from the latest available performance data date. It is calculated on a bid to bid basis with net income reinvested. Currency Depreciation A fall in the value of one currency in relation to another. A movement in floating exchange rates results in one unit of a currency buying fewer units of another currency, thus the value of the first currency has depreciated. For example, with a floating exchange rate, if last week 1 bought $1.50 and this week 1 buys $1.45, the value of the pound has depreciated relative to the dollar because you get less dollars for the same amount of pounds. Currency Devaluation The decrease in the value of a currency in comparison to another, often the result of a government announcement Custodian The organisation such as a bank or trust company responsible for the safekeeping, and sometimes settlement, of investments owned by a fund. D Defensives Shares in companies which are not generally sensitive to the economic cycle. For example, food producers or utilities Derivative A generic expression for securities whose prices are based on the prices of another underlying investment. Types of derivatives include futures, options, swaps and warrants. Discount to NAV The difference between the value of the underlying assets of an investment trust and the value indicated by its share price. Usually expressed as a percentage. Investment trusts can also trade at a premium to their net asset value (NAV) but it is rare. Discrete Returns This represents the total return of a fund over a specific period of time. Examples of Discrete returns are Calendar Year 2009, July 2011 and Quarter Discrete returns are calculated on a bid to bid basis with net income reinvested. Distribution Status The distribution status tells you how an investment treats the income it generates. A distribution status of Income (Inc) means that the fund pays out its income. A distribution status of Accumulator (Acc) means that a fund reinvests the income it generates, this will increase the value of units in the investment. Also Known As: Fund Type, Income Status Diversification Spreading risk by investing in assets with different characteristics. For instance, an individual might invest in a combination of bonds, property and equity. Or equity-based funds might invest in a variety of countries or market sectors. Investors can also diversify by investing in a range of different types of funds. Page 67

69 Glossary Dividend An after-tax distribution of a company s or fund s profits to shareholders, normally specified in pence per share in Britain. Dividends are usually paid twice a year interim and final. Dividend Yield 12 Months Yield is a measure of the fund's income distributions, as a percentage of the fund price. Morningstar calculates this figure by summing the income distributions over the trailing 12 months and dividing that by the sum of the last month's ending NAV plus any capital gains distributed over the 12-month period. Morningstar adds back capital gains to estimate what the fund's ending price would have been had it not distributed these gains; this makes the result more comparable to a stock yield because stocks do not distribute gains but rather simply increase in price. Domicile The country of residence of a person, fund or company. It can have important tax implications. Duration (Bond) Duration is a way of telling you how much a bond s price will change when interest rates change, not how long the bond has left to maturity. In general the duration tells you approximately how much the bond price will move (in percentage terms) when interest rates move by 1%. E Earnings A company s income during a certain period. The cost of sales, operating expenses, depreciation, taxes and other expenses are subtracted from revenue. Earnings per Share (EPS) A company s total earnings divided by the current number of shares outstanding. EPS gauges the profitability of the company from the view of the shareholders. It is used to calculate the price to earnings ratio P/E ratio. Emerging Europe Proportion of portfolio invested in the countries that were formerly part of the Eastern bloc such as Poland, the Czech Republic, Russia & Latvia. Emerging Market The financial markets of a developing country. Some consider this a higher risk investment sector because of potential political and economic instability, short investment history and illiquidity. Energy Proportion of portfolio invested in companies operating in areas such as oil and natural gas services. Some examples of companies in this sector include BP, Royal Dutch Shell, Pennzoil and Total Fina. Equity Equity is a unit of ownership in a company and is sometimes called stocks or share. When you buy equity, you become a business owner, and the value of your ownership stake will rise and fall according to the success of the underlying business. Also Known As: Stock, Share Page 68

70 Glossary Equity Fund A fund investing primarily in equities. It can be based on any number of investment strategies. Equity Region This is the percentage of the equity holdings of a fund invested in each of the following twelve world regions: Asia Emerging Asia Developed Australasia Japan Africa - Middle East Europe Emerging Europe - ex Euro Eurozone United Kingdom Latin America Canada United States Equity Sectors Equity sectors are a way of classifying equities by the industries that companies operate in such as Media or Healthcare. Not to Be Confused With: Fund Sectors Such as IMA or ABI Sectors Equity Style Box This is a proprietary Morningstar data point. The Morningstar Style Box is a nine-square grid that provides a graphical representation of the "investment style" of equities and mutual funds. It classifies securities according to market capitalisation (the vertical axis) and growth and value factors (the horizontal axis). By providing an easy-to-understand visual representation of equities and fund characteristics, the Morningstar Style Box allows for informed comparisons and portfolio construction based on actual holdings, as opposed to assumptions based on a fund's name or how it is marketed. Equity Style Box diversification The percentage of an investment invested in each of the nine Style Box sections. Ethical Investment See: Ethical Issue Focus or Socially Conscious Page 69

71 Glossary Ethical Issue Focus This represents the ethical or socially responsible criteria an ethical fund applies as part of its investment strategy. Ethical funds are classified into one of four investment focuses: Environmental Focus ESG Focus Religious Focus Sharia Focus These funds ascribe to "green" investing and have a strong focus on environmental sustainability. These funds incorporate environmental, social, and governance factors into investment analysis and portfolio construction. These funds use religious teachings, principles, or values as a stock screening tool. Funds with this tag have a focus on moral principles when considering investment decisions These funds focus on compliance with Islamic law for investment practices. Under Islamic law, there are rules that govern the payment of interest and fees etc. Exchange Traded Fund (ETF) ETFs are hybrid instruments combining aspects of investment trusts and unit trusts and offering many the benefits of both. ETFs are products that trade like shares on the London Stock Exchange. They mimic stock market indices and are passively managed just like an index fund. The charges levied on these types of investment are relatively low compared to that of a traditional mutual fund, making them a very attractive investment vehicle. Exit Charge A fee or sales charge imposed when investors sell shares in certain unit trusts or other investment vehicles. The amount tends to decrease the longer you hold the shares, often to nothing after a set period of time, i.e. three or five years. This is typically designed to discourage investors from withdrawing their money too soon. F Fees & Expenses The average fees and expenses for all funds in the portfolio. Financial Services Authority (FSA) The City s leading financial regulator. It is responsible for policing the financial services industry to protect investors interests. The FSA regulates the financial services industry and has four stated objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime. Financials Proportion of portfolio invested in companies operating in areas such as banking, insurance, investments and property investment. Some examples of companies in this sector include AMVESCAP, Aviva, HSBC and Lloyds TSB. Fixed Income Credit quality Fixed interest holdings such as GILTs and Corporate Bonds are independently assessed by credit rating agencies based on their financial condition to establish their quality and safety. The highest rating is AAA, followed by AA, A, BBB, BB, B. The bonds classified as Junk are those with a rating below B. Also Known As: Bond Credit Quality Page 70

72 Glossary Fixed Income Fund (Bond Fund) A fund which invests primarily in bonds. Its assets can include corporate debt, government debt or a combination of the two types. Front Load See: Initial Charge FTSE FTSE, also pronounced "Footsie", is named for the Financial Times (FT) and the London Stock Exchange (SE), who are its joint owners. The FTSE family has numerous indexes including the FTSE 100, 200, and techmark, but most commonly, Footsie refers to the FTSE 100. This is a common abbreviation for the FTSE 100, a stock market index based on Britain's 100 biggest companies. Other indices in the FTSE family include the 350 and the All-Share. FTSE 100 An index comprised of the 100 largest companies by market capitalisation on the London Stock Exchange. FTSE 250 An index that measures the share price performance of medium-sized British companies. The next 250 largest firms, after those in the FTSE 100. FTSE 350 An index that measures the share price performance of the 350 largest British companies. A combination of the FTSE 100 and FTSE 250. FTSE All Share Index An index the measures the share price performance of the 900 largest companies on the London Stock Exchange Fund Company The investment group which manages and distributes the investment fund. Fund Manager An individual, employed by a fund company, who is responsible for managing a fund s portfolio. Where there is more than one manager of a fund the information of the lead fund manager will be displayed. Fund Objective A fund manager s stated goal for the money invested in his fund, such as capital growth or steady income flows to investors. Also Known As: Investment Strategy Fund of Funds A fund that specialises in buying shares in other funds rather than individual securities. Fund of Funds Fettered and Unfettered Fettered means that the fund of funds is restricted to investing only in the internal funds run by the same fund management group. An unfettered fund of funds can invest in funds from any management group. Fund Size The total value of the investments held in the fund s portfolio. In Funds Profiler the value of the overall fund is displayed not the size of the individual share class. Page 71

73 Glossary Fund Switching The transfer of money from one fund to another within an investment product. Fund Type The fund type tells you whether the fund pays out the income it generates, labelled inc (income), or accumulates it in the fund, labelled acc (accumulator). In Investment profiler these are labelled as income (inc) and growth (acc). Also Known As: Income Status, Distribution Status G Gilts A UK government issued bond. Because a Gilt is guaranteed by the government it is generally one of the safest investments in the UK. Global Fund A fund that invests in UK and international shares or bonds. Growth Stock A stock with a low price to earnings ratio but high Earnings per Share (EPS) growth. Healthcare Proportion of portfolio invested in biotechnology, pharmaceuticals, research, services, home health, hospitals, medical equipment and supplies, and assisted living companies. Examples include Fresenius, Aventis and GlaxoSmithKline. H Hedge Fund A portfolio which makes extensive use of unconventional investment tools such as derivatives. High Yield Bond Corporate debt with a relatively high risk of default. Also Known As: a junk bond High Yield Fund A bond fund investing primarily in securities with lower investment grade or "junk" ratings. I Inception Date See: Launch Date Income Status See: Fund Type Page 72

74 Glossary Index A collection of securities chosen to attempt to represent a specific investment area. Common ones include the Dow Jones Industrial Average, the S&P 500 and the FTSE 100. Many funds choose to benchmark themselves against an index as a performance measure. Index fund A fund that tracks a particular index and attempts to match the returns of that index. The fund manager typically studies the index s movements to ensure the fund s securities are representative of the index with the sectors matched proportionally. Also Known As: Tracker Fund Information Ratio This statistic is commonly used to measure a fund manager s skill against the benchmark. The out/underperformance of the fund relative to its peer group is divided by the tracking error. Therefore, anything positive is above average and anything negative is below average. The larger the number the better the manager s past performance compared to the benchmark. Initial Charge The fee payable to a management company upon the purchase of units to pay for administration, marketing of the fund and commission to the adviser (where applicable). Also Known As: Front Load Institutional Investors A generic term for an organisation that invests large sums of money, often other people s savings in securities and funds. Examples of institutional investors include pension funds, insurance companies, investment companies and endowment funds. Institutional investors are covered by fewer protective regulations because it is assumed that they are more knowledgeable and better able to protect themselves. They account for a majority of overall volume traded and the value of shares held. Investment Strategy See: Fund Objective IMA Sector The Investment Management Association (IMA) is the trade body that represents the groups which run OEICs and Unit Trusts. Each fund that is a member of the IMA is assigned a sector based on the investments it holds. Funds in the same sector will often hold similar investments and have similar objectives. Investment Trust A collective investment that invests in shares of companies or fixed income securities. Its own share price does not necessarily reflect the value of its assets. When the net asset value (NAV) per share exceeds the share price, it is trading at a discount and when the NAV/share falls below the share price, it is trading at a premium. Also Known As: Close Ended Fund ISIN Pronounced Eye Sin International Securities Identification Number (ISIN) is a coding system used to distinguish securities. Page 73

75 Glossary L Large Cap A determination of large, mid or small cap is made by separating all of the stocks into 10 global regions. The largest 5% in a given region are large caps, the next 15% are mid-caps and the bottom 80% are small caps. Latest Price This is the latest available price for one unit or share of the investment. If available the latest price shown will be the Close Price, if this is not available the price shown will be the NAV, and if that is not available the price displayed will be the Bid Price. Launch Date The date the fund was launched. Also Known As: Inception Date Legal Structure The structure of a fund based on the law in which it is domiciled. For example, these can include, Open- Ended Investment Companies (OEICs) and Unit Trusts. Liquidity A measure of how easy it is to buy and sell shares without notably moving the share price. London Interbank Offered Rate (LIBOR) The interest rate that the largest most creditworthy international banks charge each other for loans. The LIBOR rate is typically 12.5 basis points above LIBID (London Interbank Bid Rate). London Stock Exchange (LSE) One of the largest stock exchanges in the world. The most frequently quoted index on the LSE is the FTSE 100. Long Position The long position of an asset type in a fund represents the percentage of overall fund assets that the fund manager has invested in holdings that will increase in value when the underlying asset increases in value. Example of long positions include investing in shares of a company or investing in GILTS M Management Fee See: Annual Management Charge Manager of Manager In a manager of manager fund different managers are responsible for different aspects of the investment strategy for the fund. For example one fund manager may be responsible for the overall asset allocation strategy, another may be responsible for picking equities for the fund and another may be responsible for picking fixed interest holdings for the fund. Also Known As: Multi-Manager Page 74

76 Glossary Manager Since The date at which the fund manager became responsible for managing a fund s portfolio. Also Known As: Manager Tenure, Manager Start Date Maturity (Bond) Maturity is the length of time remaining until the date the bond issuer has agreed to pay back the amount lent. Max Drawdown This represents the worst possible return over the time period stated. This is the return the investor would have got if they had invested at the highest fund price and sold at the lowest. Mid Cap A determination of large, mid or small cap is made by separating all of the stocks into 10 global regions. The largest 5% in a given region are large caps, the next 15% are mid-caps and the bottom 80% are small caps. Minimum Initial Investment This is the minimum lump sum investment that can be made into a fund to open an account. The data represents the minimum amount if purchasing units of the fund directly from the fund company. If units are purchased via a third party, such as a Wrap or Fund Supermarket, then the minimum investment may be different. Minimum Monthly Savings This is the minimum amount that can be invested in the fund via monthly savings. If units are purchased via a third party, such as a Wrap or Fund Supermarket, then the minimum investment may be different. Modern Portfolio Theory (MPT) Refers to the body of innovations in portfolio management from the 1950s. The central plank of MPT is the concept of diversification - the fact that a well-chosen group of assets can achieve a higher rate of return with a lower level of risk than any asset taken in isolation. Another important concept is that of Market Risk. A fund s risk can be split into two parts: on the one hand, variations due to movements in the stock market as a whole (described by Beta), on the other hand, variations independent of broad market movements (specific risk). Alpha, Beta, R-squared Correlation, Volatility are statistics usually associated with MPT. Page 75

77 Glossary Morningstar Analyst Ratings for funds This is a rating assigned to a fund based on qualitative analysis of the fund s investment strategy. Morningstar evaluates funds based on five key pillars Process, Performance, People, Parent, and Price which its analysts believe lead to funds that are more likely to outperform over the long term on a riskadjusted basis. A fund can have one of the following five ratings: Gold - Best-of-breed fund that distinguishes itself across the five pillars and has garnered the analysts highest level of conviction. Silver - Fund with notable advantages across several, but perhaps not all, of the five pillars strengths that give the analysts a high level of conviction. Bronze - Fund with advantages that outweigh the disadvantages across the five pillars and with sufficient level of analyst conviction to warrant a positive rating Neutral - Fund that isn t likely to deliver standout returns but also isn t likely to significantly underperform, according to the analysts. Negative - Fund that has at least one flaw likely to significantly hamper future performance and that is considered by analysts an inferior offering to its peers. The ratings reflect Morningstar analysts conviction in the fund s ability to outperform over the long term. The rating is not an individualised recommendation; the best emerging markets equity fund, for instance, might not fit with a particular investor s risk appetite, time horizon, and other portfolio holdings. While the rating is a useful short-hand, investors must read the underlying report to gain a full understanding of the fund. Morningstar Category The Morningstar Category is a classification system for funds. Each fund is assigned a Morningstar Category based on its individual holdings. The Morningstar Category is regularly updated. If a fund manager shifts the investment strategy of the fund then its Morningstar Category may well change. Morningstar Overall Rating Morningstar rates investments from one to five stars based on how well they've performed in comparison to similar investments, after adjusting for risk and accounting for all relevant sales charges. Within each Morningstar Category, the top 10% of investments receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. Investments are rated for up to three time periods - 3, 5, and 10 years, and these ratings are combined to produce an overall rating. Investments with less than three years of history are not rated. Ratings are objective, based entirely on a mathematical evaluation of past performance. They're a useful tool for identifying investments worthy of further research, but shouldn't be considered buy or sell recommendations. Multi-Manager See: Manager of Manager Page 76

78 Glossary Mutual Fund A general term for a unit trust, OEIC or any other collective investment scheme. Also Known As: Collective Investment N NASDAQ Pronounced Naz Dack An American stock market which is best known for its technology companies. NASDAQ (National Association of Securities Dealers Automated Quotations) is the second largest market in America and was the world s first electronic stock market. Listed companies include Cisco, Dell, Intel and Microsoft. Net Asset Value (NAV) The value of the investments in a fund. In the case of a unit trust or OEIC the net asset value per share normally corresponds to the fund s market price, subject to any sales or exit charge. Net Position The net position of a fund in an asset type represents the overall amount the manager has invested in the asset class. It is calculated by subtracting the short position from the long position in the asset class. In any portfolio breakdown where it is not stated whether the breakdown is long, short or net then the net position will be displayed. New York Stock Exchange (NYSE) The largest and oldest stock market in America. Based on Wall Street. Its most widely quoted indices are the Dow Jones Industrial Average and the S&P 500. O OBSR Rating (OBSR) Old Broad Street Research is recognised as the leading qualitative investment research company in the UK retail funds market. They specialise in dedicated consultancy, researching and analysing investment funds and product wrappers. OBSR Fund Ratings are widely acknowledged as an independent mark of quality. This is what each rating means: AAA Rating - this is the highest rating awarded. It is given to funds which demonstrate very powerful investment processes and disciplines which OBSR believe will translate into exceptional long-term performance. The AAA Rating is an indication of excellence. AA Rating - this is determined using the same methodology as for the AAA Rating. The AA Rating is an indication of highly superior quality based on process and track record. A Rating - this is again determined using a methodology consistent with that applied for the AAA and the AA Ratings. A fund which achieves the A Rating status is a highly commendable one. Susp (Suspended Rating) - an OBSR Rating may be suspended when a change of circumstances necessitates further research to be undertaken. Examples of such circumstances would be the departure of a fund manager or a change in investment mandate. Page 77

79 Glossary OEIC Pronounced Oyk An OEIC (Open-Ended Investment Company) is a collective investment that takes its structure from both a unit trust and an investment trust. An OEIC is single-priced and issues shares like an investment trust. However, rather than buying and selling shares on a stock exchange, people investing in OEICs transact with the fund company. Option The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time. For stock options, the amount is usually 100 shares. Also called option contract. P Performance Fee A payment awarded to a fund manager if certain performance levels are attained in a set period of time. Often, it refers to the achievement of a return on a fund over and above the investment objective. Preference Shares Shares that pay dividends at a specific rate while the dividends of ordinary shares fluctuate or may not be given at all. They do not normally carry a vote unless dividends fall into arrears. Represents a claim prior to common shareholders on the earnings of a company and on the assets in the event of liquidation. Primary Share Class See: Share Class Type Q Quarter End Investment quarters are specific three month periods throughout the year which end on the following four dates: 31st March 30th June 30th September 31st December Quartile Rank Quartile rank gives a summary of how the past investment performance of a fund over a given time period has compared to other funds in its sector. Funds receive a rank of 1 to 4, with a rank of 1 representing the best performing funds in a sector. R Retail Price Index (RPI) A measure of inflation. This index tracks a basket of the goods and services, such as clothing, food, household goods and medical care, purchased by an average consumer. Page 78

80 Glossary R-Squared (R2) This is a measure of the percentage of fund s movements that can be accounted for by changes in its benchmark index. An R-squared of 100 indicates that fund s movements are perfectly correlated with its benchmark. A low R-squared indicates that little of the fund s movements can be explained by movements in its benchmark index. S S&P 500 A stock market index which represents the performance of 500 of America's largest companies. Sector Average Performance Where sector average performance or risk statistics are displayed in a panel this represents the average of all funds which belong to the same sector as the fund belongs to. Share Class Type Share classes are different versions of the same fund. Different share classes usually have the same underlying portfolio but there will be slight differences in things such as charges, the treatment of income and the minimum investment amount. The primary share class filter is a way of identifying one share class per fund to make your fund searches more manageable. In most cases the primary share class is selected at the discretion of the Fund Management Company. Where the fund management company has not provided a primary share class we use the oldest open share class of the fund. Share See: Equity SEDOL Pronounced See-Doll SEDOL stands for Stock Exchange Daily Official List number. It is a seven digit European security identifier number. Sharpe Ratio This is a risk-adjusted measure developed by Nobel Laureate William Sharpe. The Sharpe Ratio is a way of showing how much return a fund has received for the risk it has taken. The higher the Sharpe Ratio, the better the fund s historical risk-adjusted performance. Mathematically speaking the Sharpe Ratio is calculated by dividing fund s excess returns over the risk free rate by the standard deviation of fund s excess returns. Short Position The short position of an asset type in a fund represents the percentage of overall fund assets that the fund manager has invested in holdings that will increase in value when the underlying asset decreases in value. Examples of short positions include short selling an equity or purchasing a put option on an investment. Page 79

81 Glossary SICAV Pronounced Sick-Av A SICAV, Sociétés d'investissement à Capital Variable, is an open-ended investment fund, similar to the UK's unit trust. Luxembourg-domiciled trusts are typically SICAVs. Small Cap A determination of large, mid or small cap is made by separating all of the stocks into 10 global regions. The largest 5% in a given region are large caps, the next 15% are mid-caps and the bottom 80% are small caps. Socially Conscious A socially conscious fund uses moral as well as financial criteria when selecting assets for its portfolio. This term is sometimes used to refer to funds which positively seek to invest in firms which are considered ethical. Also Known As: Ethical Fund Standard Deviation See: Volatility Standardised Fund Performance Standardised fund performance is past performance data for a fund that complies with the FSA's regulations to compare different investment products from different providers (COBS 4.6.4). The performance data shown is for five (or if performance information for fewer than five is available, all) complete 12-month periods, the most recent of which ends with the last full quarter preceding the date on which the firm first communicates or approves the financial promotion. For funds with less than 12 months performance data no standardised performance data will be shown. The performance data is calculated on a bid to bid basis with net income reinvested. Stock See: Equity Stock Exchange A market on which shares or other securities are bought and sold. Examples include the London Stock Exchange (or LSE) and AIM. T TER This is the Total Expense Ratio for the fund. TER is the percentage of fund assets that are used to pay for operating expenses and management fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund's NAV. Sales charges are not included in the expense ratio. Top 10 Holdings The ten largest underlying holdings in which the fund invests. Top 10 Holdings Concentration The percentage of the fund s portfolio which is invested in its Top Ten Holdings. Page 80

82 Glossary Tracker Fund See: Index Fund Tracking Error The tracking error tells you how closely the performance of a fund tracks its benchmark. The lower the tracking error the closer the fund tracks its benchmark. The tracking error is never negative. Mathematically speaking the tracking error is the standard deviation of the difference between the fund s performance and the performance of its benchmark. U UCITS Compliant Pronounced You-kits UCITS stands for (Undertakings for Collective Investment in Transferable Securities) this is an EU directive that establishes the terms under which a fund domiciled in one EU member state can be marketed in all EU countries. A UCITS compliant fund complies with these terms. UCITS KIID Ratings Pronounced You-Kits Kid By July 2012 all UCITS compliant funds will have to supply a Synthetic Risk Reward Indicator (SRRI) Rating in their Key Investor Information Document (KIID). The rating is based on the volatility of the funds past performance. Ratings range from 1 to 7 with 1 representing those funds with the lowest past volatility and 7 those with the highest past volatility. Two values for this rating are supplied: The official Rating as Supplied by the Fund Management Company A rating as calculated by Morningstar, an independent investment research company. V Value stocks An undervalued stock as indicated by low price earnings ratio (P/E ratio), high dividend yield and a low price to book ratio. Volatility The term volatility indicates how much and how quickly the value of a fund changes. Mathematically speaking the Volatility figures supplied in Funds Profiler represent the annualised Standard Deviation of Discrete Monthly Fund Performance. Also Known As: Standard Deviation Page 81

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