What is PA Prime?
PA Prime is a PortfolioAid ratings algorithm that calculates a holistic portfolio risk score (as opposed to individual product risk ratings) that can be used to conduct suitability analysis of discretionary and other managed account programs. Using standard deviation, the principal risk classification methodology that Canadian mutual fund / ETF providers use for measuring investment fund risk levels, PA Prime calculates a risk score for every portfolio as if it were an investment fund.
How does PA Prime work?
PA Prime calculates the annualized standard deviation of the portfolio as constructed at a specific point in time. This calculation applies 10 years of return history, using adjusted month-end pricing to account for dividends, stock splits, etc. The risk scores are then translated into meaningful risk descriptions that provide compliance supervisors and advisors with enhanced insight into portfolio suitability metrics.
Where is Prime used?
- Managed account programs
- Separately managed account programs
- Segregated account programs
- Other discretionary account programs
Summary
PortfolioAid recognizes that its clients are continually adapting their business models and compliance teams to align their processes in line with regulatory demands and in turn PortfolioAid is committed to partnering with its valued client in this endeavor.
Please contact us for a demo of PA Prime today.