Householding: The Holy Grail of Wealth Management!

BOSTON, Aug. 27, 2019 /PRNewswire/ -- Northfield is pleased to announce that the tax optimization capabilities of our systems have been expanded to handle a complete and robust process for "householding" optimization. Northfield believes this is the most important innovation in tax-sensitive portfolio management in many years. Household Optimization is an application in which all the different accounts of a family (e.g. one or more taxable accounts for dad, one or more taxable accounts for mom, tax advantaged retirement accounts, education accounts, trust funds for children, etc.) could be jointly optimized in a holistic fashion so as to maximize after-tax returns while respecting the many heterogenous aspects of the family accounts (different legacy portfolios, different tax circumstances, different risk aversion).  The householding concept also has applicability to taxable institutional investors such as insurance companies and pensions funds in countries such as Australia.

So why is this important?  Traditionally, the use of optimization technology has fit squarely within the institutional space.  Large funds would make use of sophisticated optimization tools to better structure their portfolios in a risk sensitive way.  But this would leave out millions of individual investors.  Northfield sees an optimization application as a much more broad based tool that can service everyone from the billion dollar hedge fund PM down to the retiree in Florida who wants to better control their investments.  As an application, Northfield's householding functionality will add a level of granularity and sophistication to private wealth managers that to this point is not an option in this segment of the financial services industry.

The practical implementation of realistic householding optimization is a major step forward in the effort to serve taxable investors well. The ability to do a holistic joint optimization of all the financial accounts of a household is an unprecedented capability that can now be brought forward to benefit investors. The new capabilities will be available in all variations of the Northfield Optimizer from our desktop version, our LD version (large deployment), MARS (industrial size) and the various third-party partner deployments of our optimization computation library.

About Northfield

Northfield is a market leader in providing investment professionals analytical and operating efficiency tools to enhance individual portfolio and firm-wide performance. Founded in 1985, Northfield has developed open, analytical models to identify, measure, and control risk. These risk models cover most marketable securities traded worldwide. Based upon award-winning research and sound investment theory, Northfield's products and services have stood the test of time from users within the global institutional investment community. With more than 300 clients worldwide and offices in Boston, Chicago, London, and Tokyo, Northfield is a preferred partner for institutional investors and asset managers.

Contact:
Ian Bomberowitz
617-208-2041
[email protected]

SOURCE Northfield