Press Room
Andrew Rudd Unveils New Approach to Financial Planning
Advisor Software Chairman and CEO Delivers Keynote Address at the World Series of ETFs Conference in Key Biscayne, Florida
Lafayette, CA - March 31, 2005 - In his keynote address today at the IMN World Series of ETFs Conference, Andrew Rudd, the Chairman and CEO of Advisor Software, presented a dramatically different approach to goals-based financial planning. Speaking to a group of financial planners, advisors, and other wealth management professionals, Mr. Rudd laid out a proprietary framework which delivers personalized investment strategy advice based on a holistic household view of an investor's goals, resources, liabilities and priorities.
ASI's goals-based financial planning framework takes a fundamentally new approach to the planning process. This framework is built upon five core components which enable financial services firms and their advisors to better drive the financial planning and investment strategy process for a client. These components include a multiple-goal framework, a comprehensive view of the client's balance sheet (both resources and liabilities), asset allocation and investments, Monte Carlo simulation to model portfolio behavior vs. goals, and dynamic recalibration over the investor's lifecycle.
"The typical approach to financial planning has many shortcomings. The traditional viewpoint considers investments in isolation from the client's other resources, approaches risk budgeting psychologically, and is overly focused on absolute returns," said Andrew Rudd. "What clients really want is to know that they are able to meet a range of financial goals given their current and future assets and liabilities. As such, financial planning should be considered in the context of the client's entire balance sheet, with risk budgets determined by the potential impact of a shortfall on goals. This will enable financial advisors to dynamically manage investment strategies for clients throughout different life stages as client goals change over time."
About Advisor Software, Inc.
Advisor Software, Inc. (ASI) was founded in 1995 by Andrew Rudd (Founder and former Chairman and CEO of Barra, Inc.) to deliver institutional-strength analysis and advice to the individual investor. ASI's applications are designed for a wide range of asset management firms, broker/dealers, banks, insurance companies, online brokerages, and other financial institutions, enabling these institutions and their advisors to deliver more insightful, actionable investment advice and build stronger, more profitable client relationships. Advisor Software provides financial institutions with web-based hosted solutions that facilitate the investment decision-making process for their advisors and clients.
ASI's next-generation financial planning capabilities will be available in Q3 of this year. For more information, please visit our website at www.advisorsoftware.com.
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