A novel way to model investment portfolios based on historical parameters, and create unique forecasts based on assumptions controlled by the investors.
As part of a wider product development project for Bowmore Asset Management, an investment management firm and Invessed, a Digital Experience Platform (DXP) solution, the R&D team developed a novel way to model investment portfolios based on historical parameters, and create unique forecasts based on assumptions controlled by the investors.
Create projections compliant with Financial Regulations
Due to the absence of an off-the-shelf solution that would enable our team to deliver such a solution within the existing Cloud architecture, GrowCreate created a custom implementation to create models based on data available from APIs. Other financial metrics - such as investment horizon, risk profile and inflation - were used to create projections compliant with Financial Regulations. The resulting data were plotted using charting engines and delivered in PDF and CSV formats.
This portfolio modelling engine allows us to source data from diverse sources, generate forecasts and deliver them in diverse formats, at scale. This mechanism fulfills the requirement to source data from several different data sources including CRMs, financial systems and other data repositories. Dynamic forecasts are subsequently delivered to secure, mobile-optimised financial environments.
Scientific or technological uncertainties
The advancements described above could not be achieved without resolving scientific/technological uncertainties. The main scientific/technological uncertainties that the company sought to overcome during this claim period are summarised below:
- How to construct portfolio models based on financial data collected and merged from multiple sources and locations
- How to generate accurate growth forecasts, based on user-controlled risk appetite, the notion of inflation and other assumptions
- How to deliver these forecasting toolkits in a user-friendly way, using a secure environment and ensure regulatory compliance
Eventually, the team was able to circumvent all the technological challenges to achieve a flexible and scalable data management solution for Bowmore Asset Management and the Invessed platform.