Assumptions

Generic assumptions are set by the advice firm. In the absence of specific product options these assumptions will be used within the optimisation algorithm to determine strategic recommendations. Examples of generic assumptions include:

• Expected rates of return per asset class;
• Expected volatility per asset class;
• Expected cost of debt;
• Expected fees for various investment products.

For example, if no specific assets are included in the model the optimisation engine will make purchase decisions at an asset class level (using generic asset class assumptions) rather than provide specific individual asset recommendations.