Ameriprise Financial, formerly known as American Express Financial Advisors today announced the implementation of ILOG's optimisation software to quickly assess and calculate financial plans for its customers.
The system, known as Lifetime Optimizer, allows Ameriprise to create investment programmes specific to the customer's risk tolerance, tax situation, investment goals and period. ILOG's software operates in near real-time so calculations can be made quickly - which is an important especially as circumstances change.
The Lifetime Optimizer is a state-of-the-art, proprietary tool, that will allow Ameriprise financial advisors to create and propose dynamic investment strategies that address the complex and interdependent financial choices that clients need to help meet their financial goals over their life time. The Lifetime Optimizer relies on ILOG CPLEX to help customers make better financial decisions faster and manage the change in the financial market and the complexity of the fiscal regulations.
"The Ameriprise Financial Lifetime Optimizer quickly and accurately formulates a complete investment strategy that recommends where clients' existing assets should be held, saved, spent and invested over a period of time," said Bill Elliott, VP and General Manager Financial Advice, Ameriprise Financial. "One of the key benefits of the Lifetime Optimizer is that it can determine the tax treatments of different accounts and propose the optimal asset allocation strategies based on particular tax situations. And, the Lifetime Optimizer is only available at Ameriprise Financial Advisors."
Widely used by investment banks and asset management firms globally, ILOG CPLEX - the most widely-deployed optimisation software in the world with more than 100 of the Global 500 as customers - is used to optimise asset allocation (actions that minimise risks and volatility while maximising returns). ILOG CPLEX is also used to optimise a portfolio against specified indices, create portfolios with risk profiles closely matched to a given benchmark, as well as creating, managing and rebalancing portfolios that meet customers' investment goals and risk aversion.