To arrive at the optimal course of recommendations, an adviser must first identity what objective they want the optimisation problem to zone in on. PrimeSolve allows the user to set 1 of 5 different objectives to target. These are as follows:
| Objective | Method |
|---|---|
| Maximise equity. | The optimise function is set to maximise the highest projected net equity. |
| Maximise probability of meeting retirement objectives. | This optimise function is set to maximise the highest projected net equity, but multiple optimisation runs are performed with varying constraints applied to asset allocation and leverage. A simulation trial is the applied to each optimisation run to determine which trial had the highest probability of achieving the stated goals. |
| Maximise risk adjusted return. | The optimise function is set to maximise the highest possible Sharpe Ratio (risk adjusted return) on capital. |
| Minimise working hours. | The optimise function is set to minimise the total working hours a client must perform to achieve their stated goals. |
| Minimise tax. | The optimise function is set to minimise total tax paid across all tax entities. |
It is expected that 1 of the first 2 options will apply in most examples.
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