Risk profile investments

It is now possible to invest a fund in a risk profile, rather than being restricted to funds or asset classes. This enables the forecast to utilise the efficient portfolio that has been designed specifically for the user's risk rating, risk benchmark, and investment term. EValue's efficient portfolios are reviewed and updated quarterly in order to remain aligned to the current market conditions.

All of our Investment and Retirement APIs now fully support investing in a risk category, for any term and risk benchmark. The fund object has 2 new fields to support this: riskGroup and riskTerm. The riskGroup field relates directly to the risk benchmark; our standard offerings are 5, 7, 10. The riskTerm is separate to the more commonly used forecast term; this enables the user to drive their asset portfolios by the individual goal rather than the retirement date. The user's risk profile is captured under the code, as per the usual fund, with the prefix “risk”. An example of this is shown here with a user who is invested in a risk profile 1 of 5, over a 10 year term.

"funds": [{
    "riskGroup": 5,
    "riskTerm": 10,
    "code": "risk1",
    "balance": 10000,
    "contributionPercentage": 100,
    "adjustment": 0.1
}]

Today's Prices Index

It is also now possible to specify an index when utilising the ability to view the user's forecast in today's prices.

The forecast options allow the model results to be adjusted for inflation, so they can show results in today's prices or future prices. The Investment and Retirement APIs use the Retail Price Index as a measure of inflation by default, but they now also support Consumer Price Index. The forecastOptions object has a new field to support this: todaysPricesIndex. An example of this is shown where the user is viewing their prices in today's value, using the Consumer Price Index as inflation.

"forecastOptions": {
    "todaysPrices": true,
    "todaysPricesIndex": "CPI",
    "taxOptions": {
        "region": "UK"
    }
}

Improvements to retire now functionality

There have been a number of bug fixes included in this release in order to improve the functionality offered to users entering retirement.

  • We have addressed an issue whereby the user's current value wasn't being shown in year 0 of the forecast if they were retiring immediately.
  • Also, where a user's retirement date isn't aligned to their date of birth we previously experienced issues as the modelling is processed in complete years. In order to best reflect how a user might act, we now take the lump sum in the year of retirement.