Bringing institutional investment strategies to personal wealth

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Ortec Finance’s OPAL Wealth brings institutional-level insights to help advisors guide clients toward achieving personal financial goals amidst economic uncertainty

AS DEFINED-BENEFIT plans fade, many Canadians are finding themselves in uncharted territory when it comes to their financial futures. Today’s workers face the daunting task of actively managing their retirement savings, making decisions that used to be automatic. But how do you line up today’s resources with tomorrow’s needs? That’s where goals-based investing steps in – what some call a game-changer for modern financial planning. More financial advisors are encouraging clients to focus on what really matters – achieving specific life goals. Ortec Finance, a global leader in institutional asset-liability management (ALM) solutions, has brought this approach to the private wealth market with OPAL Wealth. Leveraging decades of experience with institutional clients, Ortec Finance adapted their powerful predictive technology to meet the needs of individual investors. Neil Greenbaum,

Ortec Finance develops and markets innovative, high-quality software models and technology solutions. These tools support investment firms, private banks, and financial advisors in making sound investment decisions. Our independent nature and strong academic ties enable us to serve a global clientele effectively. Founded in 1981 by leading experts in Econometrics and Technology, Ortec Finance has built an outstanding reputation for reliability. We model and map relevant uncertainties to help clients monitor their goals and decisions. With over 600 clients in more than 20 countries, we play a vital role in improving investment decision-making and managing uncertainty.

Key benefits with Opal Wealth

Realistic economic scenarios to create realistic wealth projections

“Our stochastic engine goes beyond the usual metrics, considering market conditions, risk-return projections, and the full scope of factors that impact a client’s ability to meet their goals”

Neil Greenbaum, Ortec Finance

executive vice president of sales and partnerships for Ortec Finance, explains how OPAL Wealth is enabling advisors to offer a goals-based methodology that simplifies financial planning while providing clients with clarity and peace of mind.

The appeal of goals-based investing lies in its simplicity. Traditional financial planning tools often rely on complex models and data-heavy reports that can overwhelm clients. By contrast, goals-based investing offers a more intuitive approach. “Clients don’t want to be bogged down by complicated graphs and performance reports,” says Greenbaum. “What they really care about is whether they’re on track to meet their goals.” This shift in focus makes the financial planning process more engaging for clients and less about chasing returns or outperforming benchmarks. Greenbaum believes this approach is also more sustainable for advisors. “When you center the conversation around goals, it’s

easier to scale that advice across all of your clients,” he says. “It’s more personalized, more dynamic, and frankly, more meaningful for everyone involved.”

For advisors, the tools they use to manage client goals are as important as the strategies themselves. This is where Ortec Finance’s expertise in economic scenario modeling comes into play. The company’s OPAL Wealth platform uses a sophisticated scenario engine to help advisors make informed decisions based on real-time market data and evolving economic conditions. But Greenbaum emphasizes that technology is not just about crunching numbers – it’s about enhancing client relationships. OPAL Wealth, for instance, integrates with Salesforce’s Financial Services Cloud, allowing advisors to track client goals seamlessly, monitor progress, and make adjustments when needed. “We’re helping advisors move from a reactive approach to a proactive one,” he explains. “When markets are volatile, our tools give them the confidence to reassure their clients that their goals are still on track.”

Before this integration, advisors often had to navigate among multiple systems, which created inefficiencies and a disjointed client experience. “Salesforce realized that advice enablement was becoming fragmented,” Greenbaum notes. “Advisors were getting frustrated with the ‘swivel chair’ problem – having to move in and out of different platforms multiple times a day.” By providing daily updates on client portfolios and economic conditions, the platform ensures that advisors can make timely adjustments, improving the overall experience for clients and increasing their likelihood of achieving their financial objectives. Additionally, when clients are off track, the OPAL Wealth platform allows advisors to quickly optimize their portfolios using built-in tools. In many cases, this capability leads to

increased wallet share, as clients move assets from other advisors or institutions into the hands of those who can offer a more proactive, goals-based approach. This ability to optimize and adjust on the fly builds significant trust and loyalty with clients. Greenbaum explains that when advisors can resolve issues swiftly and focus on long-term goals, clients are more likely to stay engaged and committed to their financial plans. “It’s about making things easier for the advisor to resolve, while building trust and loyalty with the client base.”

Businessman analyzing market data, financial graph report, economic growth, business strategy, planning and solution, risk management

Transforming wealth management with goals-based investing

Enhancing client relationships with proactive, integrated technology

Published November 4, 2024

“We wanted to create a system where advisors could easily apply goals-based investing across their entire client base. It’s not just for a select group of clients; it’s something every investor can benefit from”

Neil Greenbaum, Ortec Finance

Alerts advisors when goals are off-track or need optimization

Fully compliant with local legislation and regulations

Enhances client engagement while increasing client trust

Incorporates your client’s risk capacity and risk willingness

Generates portfolio insights

Aligns capital market assumptions and model portfolios across all divisions and client segments

Monitors client portfolios and goals at scale

Key benefits with Opal Wealth

“In institutional ALM, we focus on assets and liabilities on a large scale – like pension funds,” says Greenbaum. “In the retail space, the assets belong to individual clients, and their liabilities are their goals.” Ortec Finance’s challenge was to adapt their institutional approach to the specific needs of private wealth clients. The result was OPAL Wealth, a platform designed to help advisors take a predictive approach to financial planning by forecasting different market scenarios and their potential impacts on client goals. But Greenbaum is quick to note that it’s not just about adapting technology – it’s about shifting the mindset of financial planning itself. “We wanted to create a system where advisors could easily apply goals-based investing across their entire client base,” he explains. “It’s not just for a select group of clients; it’s something every investor can benefit from.”

For financial advisors, compliance and suitability are ever-present concerns. OPAL Wealth addresses this by integrating risk profiling into the goals-based framework, enabling advisors to ensure that clients’ portfolios are aligned with their risk tolerance. This approach helps keep financial plans suitable for each individual client while allowing for adjustments as needed. “We make the KYC [know your client] process dynamic,” Greenbaum explains. “It’s not something you do once a year and then forget about – it’s part of an ongoing conversation about risk, goals, and how best to align the two.” This helps advisors not only stay compliant but also create more engaging and transparent relationships with their clients.

Stress testing for uncertainty: aligning risk and goals for adaptive client solutions

One of the key advantages of goals-based investing is its ability to adapt to changing market conditions. Ortec Finance’s scenario engine allows advisors to stress-test financial plans against potential economic disruptions, providing a clearer picture of whether clients are on course to meet their goals. This feature is particularly useful in uncertain times, allowing clients to feel more secure in their financial plans.

Looking ahead, Greenbaum sees goals-based investing continuing to gain traction as more advisors recognize the value of focusing on outcomes rather than performance. However, the growing complexity of financial markets – and the increasing demands on advisors – will require new tools and approaches. “We’re already looking at ways to integrate artificial intelligence into OPAL Wealth, and we’re expanding our scenario sets to include things like climate risk,” he shares. Ortec Finance’s goals-based investing platform represents a shift from the typical obsession with beating the market to a more client-centric approach, one in which advisors help clients stay on track with their personal goals. Traditional financial planning tools often fall short, relying on static projections and focusing narrowly on performance. Greenbaum makes a clear distinction: “Our stochastic engine goes beyond the usual metrics, considering market conditions, risk-return projections, and the full scope of factors that impact a client’s ability to meet their goals.” Ultimately, Greenbaum believes that goals-based investing offers a way to make financial planning more meaningful and accessible. “It’s not about beating the market,” he says. “It’s about making sure that clients achieve what matters most to them, and that’s where the real value lies.”

The future of goals-based investing

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