| NorthStar provides a comprehensive set of services to consolidate the mid-office through a series of out-of-the-box application services, integrated analytics, calculators, and business rules. NorthStar also supports run-time integration of key tools such as portfolio planning, wealth planning, mean variance optimizer, a wealth forecasting engine, and portifolio construction. |
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| Planning |
NorthStar planning entails portfolio planning and wealth planning, both supported by a variety of analytics based on the risk profile and the asset classes represented in a portfolio. Portfolio planning provides high-net-worth investors with the best possible portfolio assuming an open-ended planning horizon where future cash flows are not known. Wealth planning allows a wealth manager to incorporate future cash flows into the planning process.
The portfolio can be optimized using mean variance optimization to create a more efficient portfolio. Analytics include: |
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Range of returns |
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Historical statistics |
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Range of assets |
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Hypothetical growth of a dollar |
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Efficient frontier |
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Goal achievability |
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Performance in bull and bear markets |
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Cash flow analysis |
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| NorthStar’s portfolio-centric approach aligns a goal with a portfolio, comprised of multiple accounts and balances, supporting the following potential scenarios: pre-retirement, in-retirement, education, and major purchases. Goal assessment focuses on a specific goal and supporting funds, avoiding the need for time-consuming diagnostics to generate a proposal. Monte Carlo simulation drives cash-flow analysis and goal-achievability assessment. |
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| Portfolio Construction |
NorthStar’s portfolio-centric approach aligns an investor profile and investment policy with a portfolio, which is managed through NorthStar Client Hierarchy. Portfolio construction leverages asset allocations created within the process or allocations completed before the investment selection process. Products are then selected from approved holdings lists, which are managed in NorthStar Enterprise Product Hub.
NorthStar portfolio construction and investment selection are supported by analytics that focus on products within a specific asset class used to meet the target allocation. Analytics include: |
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Allocation charts that show target portfolio versus proposed versus benchmark. |
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Equity sector allocation that compares the equity portion of the current and proposed portfolio versus benchmark to determine level of exposure to a specific sector |
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Portfolio composition that shows the top ten holdings within a portfolio |
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Performance analysis that includes annualized returns and yearly returns for the proposed portfolio versus benchmark |
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Risk characteristics of the proposed portfolio against the benchmark such as volatility, Sharpe ratio, alpha, beta, and r-squared |
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Hypothetical risk-return analysis, including annualized returns, standard deviation and risk characteristics of the proposed portfolio versus benchmark such as volatility, Sharpe ratio, alpha, and beta |
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Product characteristics that provide analysis of financial characteristics and statistics of the products within a portfolio |
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