Optimization Engine

CIOS Optimization Engine

The Optimization Engine is our portfolio optimization and rebalancing tool and is part of our investment management software: set clients restrictions and manage portfolio rebalancing

Portfolio construction is a complex and time-intense task, with advisors and portfolio managers being confronted with a number of challenges. While each client has individual investment restrictions, preferences and needs, all portfolios at the same time need to comply with the internal investment policies, too. Learn how our investment management software optimises this process.

Learn more about our Optimization Engine:

Systems for portfolio construction, risk and compliance management are not integrated within one application. This entails high manual efforts, a considerable process error susceptibility and the absence of a scalable, digital real-time process.

In our Optimization Engine, all the restrictions, preferences and opinions are stored as a set of rules. Within less than 1 second, an individual portfolio is constructed and fully documented.

By merging the investment ideation, restriction management, investment compliance pre-trade checks and documentation within one process, we save up to 40% of the work of a portfolio manager or private banking advisor.

The Optimization Engine gives you a comprehensive overview about all relevant criteria such as:

  • Are the asset and sub-asset class allocations within the bandwidths?
  • Is the portfolio sufficiently diversified across sectors and regions?
  • Does the exposure to a certain issuer exceed bank limits?
  • Does the portfolio violate the bank´s concentration risk limits?
  • Does the client have instruments that are on the restricted trading list?
  • Does the portfolio contain sell-rated instruments?
  • Does the client have permanent client constraints?
  • Are instruments being excluded from proposal (dynamic constraint)?
  • Are certain instruments currently not tradable?
Fincite Software Digital Wealth Management
Fincite Software Digital Wealth Management

Main benefits of our investment management software

  • MiFID II compliant documentation of investments and advice
  • Avoid investment restrictions violation and increase compliance
  • Empower an individual investment approach winning new customers and increasing the Net Promoter Score
  • Advisors have more time to spend with clients
  • More complex scenarios covered

Optimization process in
3 easy steps

Our Optimization Engine applies a comprehensive optimization process that unites 3 steps within one engine:


Parametrization of the engine

The bank defines its product galaxy, global investment rules, model portfolios and/or expected returns. In this step, rules are created and parameterized by the bank.


Allocation strategy

Definition of the allocation strategy including asset allocation and model portfolio. In this step, further rules are created.


Individual allocation

Creation of investment restrictions as well as customer preferences and identification of the risk profile. In this step, rules are applied. This step is parameterized by the customer and the result is an individual investment portfolio. The customer can exclude asset classes (e.g. stocks) or add asset classes.

What our customers say about our digital wealth management software: