bitarisk. BITA Star a product from corfinancial. london boston new york BETTER INTELLIGENCE THROUGH ANALYSIS better intelligence through analysis

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1 bitarisk. BETTER INTELLIGENCE THROUGH ANALYSIS better intelligence through analysis BITA Star a product from corfinancial. london boston new york

2 Expertise and experience deliver efficiency and value BITA Risk is a global provider of Private Client suitability assessment, risk profiling and portfolio monitoring applications used by relationship managers and investment advisor offices around the world to meet the needs of clients, aid good client outcomes and meet the demands of a fast changing regulatory environment. For more than 20 years, BITA Risk has combined deep industry and academic expertise in portfolio risk analysis, construction and optimisation tools to bring added value and insight to its institutional and quant clients businesses. For 10 years, BITA Risk has focussed this expertise on Private Client, Wealth Management, Family Office and Private Banking sectors; creating BITA Star - a market leading application that is core to ensuring suitability. The biggest risk, is missed client expectations A client must understand the investment risks they could face, before they can decide what level of risk is suitable for them. To achieve this understanding, a client needs to review their risk level options within the context of your firm s offering. BITA Star is an application, available as modules, that supports best practice in: KYC data collection Attitude to risk questionnaire Need for risk Capacity for loss Contextual file notes Suitability profiling Investment suitability Portfolio construction Portfolio risk Proposal generation Portfolio monitoring Portfolio back testing Suitability review Management information Audit trail Joining the dots for a consistent sales and suitability processes. To foster trust and demonstrate value, wealth managers need to reach common understanding with the client, invest in suitable products and maintain alignment with the client mandate. Suitability assessment, cannot be undertaken in isolation, but should be part of a joined up and ongoing process. This is what BITA Star delivers. 1/8.

3 This gives us a true view of risk in our clients portfolios. This has been of significant help in meeting business and regulatory requirements. We ve looked under the bonnet of your competitors and no-one comes close. This gives investment freedom within a framework adding value to our staff, clients and business. Clients have welcomed the approach, improving our new business acquisition. 4 systems out, Star in, we now have one true consistent view with full MI. We thought regulatory best practice had been based on your system. 2/6.

4 1 KYC data can be captured through BITA Star or imported from another application. Star uses client type sensitive pages, to ask the right questions and gather the right data, in text, defined format and numerical answers. Data is included in the Profile and Proposal and Review reports 2 Questionnaire is designed to educate the client in the trade-off between risk and reward, based upon examples linked to your firm s investment style and process. Proven in use for 10 years, it can form a positive part of the discussion between the client manager and prospect. It does not output a single risk score, but a series of parameters that feed into the profile and are transparent in the process. 3 Profile brings together, KYC, file notes, questionnaire output and enables the user to cross-check these for consistency and validate the suggested client profile using the suitability scan. Where needed the user can make profile adjustments supported by a file note, to feed into the next step of the process. 4 Suitability match takes the profile parameters and matches these to the investment offering of the firm. This can include different buy-lists for different client segments and locations, different models by currency and objective, or asset class constraints for self build or optimisation. Solutions deemed unsuitable are filtered out of the matching universe. 5 Portfolio build gives the user the ability to create proposed portfolios for prospects and clients and rebalance existing ones, all within a risk context and built within your investment framework, be it strategic & tactical asset allocation, model portfolio, bespoke, holding level, optimised or any combination of these. The user can see risk contributions and build within the client s profile parameters. 6 Client Proposal plays back to the client their answers to the questionnaire, their resultant profile, relevant file notes and how this has been matched to a portfolio and its characteristics complete with back testing and risk statistics. In full branding of your firm and run in seconds and can be produced in multiple languages within one system. 7 Portfolio Monitor takes the holdings of each client account, each night, and runs a series of tests at holding and portfolio level and then produces a full set of exception reports. Tests are defined by firm, but include volatility, asset allocation weights, holding weight, concentration risk, tracking error, high risk holdings. Monitor understands families of accounts and exceptions and provides full analytics to understand how to bring the portfolio back in line. 8 Suitability review is linked to the suitability diary, Monitor and all the KYC, Profile and file note data. The suitability review report checks and monitors on-going suitability for the client. 3/8.

5 A better process no missing links. Many organisations have manual, paper or Excel based, disjointed approaches to suitability and client profiling. They miss the efficiency and information gains of straight through suitability. BITA Star is an end to end solution that creates a circular workflow, linking to other systems as required, to assess and maintain suitability from the client take-on through to on-going annual review and daily management. KYC Capture Suitability review 1 Questionaire 8 2 Portfolio monitor 7 Suitability Assessment & On-going Suitability Management 3 Profile 6 4 Client proposal 5 Suitability match Portfolio Build

6 Suitability compliance is critical but it doesn t have to be a resource drain. Beyond a suitability questionnaire, BITA Star is an application that delivers a complete suitability process that is robust, transparent, repeatable and efficient. The implementation is tailored to your business, client segmentation and investment processes, right through to your products. It takes the user from KYC data collection, through the profiling questionnaire directly to the most suitable investment approach available within your firm s framework and then on to a full branded investment proposal with risk analytics and back testing. Once on-board, the client portfolio is monitored each night against a series of risk, and investment measures to ensure compliance with mandate, along with on-going suitability reports and alerts. BITA Star improves transparency and consistency at every step of the suitability process, backed up by full audit trails and management information. With our solution BITA Star: Capture KYC data: Dynamic screens capture, right data set per client type and links to your other systems. Suitability Questionnaire: BITA Risk s proven attitude to risk questionnaire, includes goal based profiling, capacity for loss; has dynamic branching and question sets according to client segment. Review Client Profile: Full analysis of the questionnaire answer pattern combined with full data for suitability profile decision support and suggested risk / product band. Set investment parameters: Full analysis of the questionnaire answer pattern combined with full data for suitability profile decision support and suggested risk / product band. Build a portfolio or Re-Balance: Both within parameters, with right product set and ex-ante risk target. Many approaches supported including optimization. Analyse the portfolio: Ex-ante Risk analysis, back test, stress test, compare portfolios, risk and return attribution and contribution, downside, VaR and other risk measures. Propose new: Use the Investment Proposal to illustrate the impact of new investments or other changes on the portfolio. Issue Investment Proposal: Confirm all data collected with the client, set out their profile and how it was matched to your investment process. Illustrate portfolio characteristics for them to check that they are happy and compare solutions. Run in seconds in multiple languages and currencies in full branding. Record File Notes: Contextual file notes, captured at each stage of the Suitability process and indexed for use in proposals and reports. Can be exported to other systems. Monitor portfolio: Full monitoring on a daily basis of the portfolio against investment, risk and mandate guidelines with full reporting. Schedule suitability reviews: Monitoring, alerts, review reports, diary alerts and manager comments support on-going suitability. MI: Management information and audit trails support sales, investment, compliance and general business management. Integrate: Each step of the process can be integrated to share data with other systems. 5/8.

7 Key Benefits BITA Star has been shown to bring. Trust: is built through frank discussions about risk and the process that will manage it Consistency: of risk assessment, application of investment policy and quality of investment proposal Articulation: of the investment process and how it s applied to the clients needs Education: of the client about risk and what they can expect by investing in risky assets Engagement: with the client in discussing what matters most, their money and its investment Expectations: of portfolio characteristics set and documented with the client giving a full audit trail Data: better quality, consistent and more efficient data capture, linking to other systems Framework: set parameters for clients managers to work within to ensure best application of the firms investment model Risk: real understanding by the manager of where the risks are in a portfolio and across their client base Monitoring: reduced business risk of being outside mandate, reduced risk of missing expectations Sales: shown to improve sales success rate through better trust and articulation and demonstrable risk management process Efficiency: simple data collection, rapid analysis and report production. Time is spent using data, not preparing it Retention: Through better understanding and setting of their expectation, retention of clients improves Compliant: Fully integrates suitability and compliance requirements within the sales, investment and client management processes attitude to risk capacity for loss need for risk downside time horizon liquidity R0 R1 R2 R3 R4 R5 Key Features that differentiate BITA Star. End to End: A single process that links all the elements of suitability and portfolio management giving control and efficiency, also available as modules Multi-dimensional profile: Not a single risk score, but a set of parameters for decision support and portfolio construction Your suitability: Not a pre-canned process but one that defines risk and suitability in the context of your firm s investment offering Mirrored process: Proposed portfolio construction mirrors the firm s approach, be it model portfolios, strategic and tactical asset allocation or something entirely different Proposal reports: very detailed client-ready reports that bring the whole investment and suitability process together for the client Risk Model: A risk model to calculate ex-ante risk designed and built specifically for private client style portfolios Integrated: designed to provide or pull data as required to give the manager one view of suitability Best Practice: is built in. BITA built Star before the regulatory need, encompassing best business practices for the benefit of the client and the firm Capacity to loss attitude to risk Goal risk need

8 When to use BITA star? BITA star brings consistency, control, structured process and data collection to support the following events and the management information needed to manage and control them. New Business Capture new business in a dynamic workflow process ensuring each client s details are captured and that the correct information is in place before moving to the next stage. Ensure consistent suitability and win the trust of the client. Re-Paper When clients need to be re-papered the capture should be electronic to facilitate greater management information and future automation as well as reduce the cost of the process. BITA star can capture the data and monitor the process. Full- Review As with re-papering, BITA star can be used to capture the salient information from a file review and build it into a client profile and then match it to the suitable investment approach, building a database for future reference and use. Full- Review Capture new business in a dynamic workflow process ensuring each client s details are captured and that the correct information is in place before moving to the next stage. Ensure consistent suitability and win the trust of the client. Monitor Regular checks on client s portfolios to ensure adherence to investment strategies and to flag potential concerns before they become issues. Monitor reduces the business risk of investing outside mandate and the risk of an unsuitable portfolio for the client. Platform BITA star is used by platform providers to provide elements of their process, from suitability and on-boarding to portfolio optimisation and monitoring, recognising the special features and in-depth solution BITA can bring. MI In the evolving wealth market space a company can only hope to expand if it truly understands what its client base wants. Each interaction generates an increasing wealth of MI for analysis and to help improve the business and to ensure its control. Merger Common alignment of all clients to a single suitability base when companies merge. Helping cross validate and compare investment strategies and attitudes between the two merging companies. 7/8.

9 KYC Risk Profile Suitability Portfolio build Client proposal Portfolio Monitor One system that joins all the dots for private client suitability and sales, with a database behind it for audit and MI; it really makes for an efficient and auditable process. MI On-going suitability 8/8.

10 bitarisk. BETTER INTELLIGENCE THROUGH ANALYSIS call visit bitarisk.com solutions from corfinancial. london boston new york. salerio. Automates the flow of securities and treasury trades from matching through to settlement. bitarisk. BETTER INTELLIGENCE THROUGH ANALYSIS Suite of applications addressing needs of private wealth managers, investment advisors, asset managers, quant teams. paragon. Fixed-income accounting hub delivers front-to-back office portfolio accounting and processing solutions. sanctionsmonitor. A sophisticated, easy-to-implement and easy-to-use sanctions monitoring, auditing and reporting tool. abraxsys. Comprehensive integrated banking platform delivering an industryleading banking service. costars. Retail fund/transfer agency solution providing end-to-end administration for collective investments. almeter. Control financial and business risk by assessing the impact of varying interest rate scenarios and hedging activities. kycmonitor. Case managment solution to provide clear evidence to the relevant authorities that effective and sufficiently robust AML controls are in place. Cor Financial is a trading name of COR Financial Solutions Ltd. Salerio, Paragon, BITARisk, SanctionsMonitor, Abraxsys, Co-Stars, Almeter and Cor Financial are all Trademarks of COR Financial Solutions Limited or its subsidiaries. COR Financial Solutions Limited All rights reserved