We are really pleased to be able to talk about the forthcoming release of Imago Front Office Version 4. This version incorporates asset level customised growth rates, we have mentioned in previous newsletters. Some of our clients have been very enthusiastic about this development, others have been less interested. For Dunstan Thomas, this development represents a shift in Imago Front Office that will enable us to create much more sophisticated modelling capabilities. I am looking forward to talking through some further enhancements to Front Office in forthcoming newsletters.
The need for variable projection capabilities has been driven out of two key reasons.
Firstly the financial downturn of the past two or so years has illustrated the inaccuracies of using inappropriate projection rates for asset classes that don’t perform at the same rate. Thus in SIPP’s where multi asset class illustrations are routinely run, the need to create a more realistic approach to projections is desirable.
Secondly, the FSA Conduct of Business states illustrations must be calculated using lower rates of return, if the standard (5%, 7%, 9% for pensions products and 4%, 6%, 8% for investment products) overstate the investment potential of the product; With this in mind we have increased the flexibility by aligning the growth rates at an asset class level.
Version 4 will enable you to set growth rates against not only the product wrapper (as it currently does) but also at the fund/asset selection level. These rates can be set as one of three types, inherited (using the standard product wrapper rates), explicit (using its own defined rates) and offset (using the inherited rates with offsets).
Reduction in Yield calculations at a product level will continue to use the presumed mid growth rate set at a product/wrapper level. Reduction in Yield figures will be additionally run against each fund/asset. There will of course be some additional illustration reporting changes to accommodate these changes.
We expect Version 4 to be made ready for our clients to use by the end of April. This will be followed by a campaign in the media to market the new version more widely. Front Office will continue to provide attention for 2010. We are looking to create a web based platform that unifies our Front and Back Office systems with access and integration into Investment platforms to help users self service information on valuations, contributions, education, projections, modelling, investment interactions and dealing.