Synaptic Product Research offers flexibility over the way that research can be conducted. For instance, you may simply want to use the data available as a reference point and produce product or provider factsheets instantly in PDF. Alternatively you may prefer to conduct product focused research and build data grids to compare the product features and conditions side by side.

Based on our own study we have identified that the favoured method for conducting research is on a full client focussed basis where client specific details are entered at the beginning of the process. This is followed by a full evaluation of the products, filtering out contracts that are not in line with the clients’ needs and culminating in the production of a suitability report for the product selected.

The following describes the latter process for investment bonds and includes some insight to typical research conducted (based on our study from 2008). The investment bonds are located under the ‘investment’ tab from the home page of Synaptic Product Research. There are several different types of bond available for research including protected benefits, distribution bonds, conventional and unitised with profit bonds. Right click over the different product titles to view the definitions. In this example we are demonstrating how to research unit linked investment bonds since our 2008 study suggests that these were the most commonly researched bond type during that year.

Here’s how simple it is:

Log in to Synaptic Product Research, select the Investment tab, then select ‘unit linked’ from under the investment bond heading. There are currently over 71 products from 23 providers available for unit linked bond research (data correct as at July 2009).

The system will take you to the ‘client entry’ screen where you can either load the details for clients (if research has been conducted for them previously) or enter details for new clients along with the investment amount. It’s worth entering the client details at this point as this information will often be used to start the product filtering process and be used in the production of a report once you have concluded the research. Our 2008 study highlighted that the most popular investments are for £50,000 or less and are usually on a single life basis for 61-65 year olds.

Click on ‘start research’ to move to the filtering screens (default is the features tab). At this point there are a host of different product features which can be used to apply simple tick box filtering to eliminate products (filtering out all the bonds that are not in line with client requirements).

By right clicking your mouse over a feature you will be able to view the feature definition. If you left click on the feature title (without ticking the box), this will allow you to build those features into a data grid for comparison without eliminating contracts from the research process. Data grids can be saved separately in PDF.

Features listed in bold have further sub features that are made available when the feature heading is ticked. Our 2008 study highlighted penalty free withdrawal options and monthly or annual withdrawal frequencies are some of the most important features being considered for investment bond clients.

Further filtering is then available from the ‘Sectors’ tab. At this stage you will be given a choice of using the Lipper global classifications or the IMA/ABI/AIC sector schemes. In this example we have opted for the IMA/ABI/AIC sectors. Here you will be able to select sectors suitable for your clients’ attitude to risk and investment objective by ticking alongside the relevant sector. Any contracts not fulfilling the full sector selections would be eliminated. Again, definitions are available by using the right click option over the sector title or you can left click to add to the data grid without eliminating products from the process.

More filtering is available from the Conditions, Stats and PP (past performance) tabs so there are many ways to reduce the remaining products and arrive at a shortlist of only those that are suitable for your clients’ needs. You can see how many have been eliminated from the research process above the contract names in the grid.

At any time throughout the filtering process you can select the ‘audit trail’ button to assist you in identifying and evidencing exactly where and why products have been eliminated from the research process (and can be saved separately in PDF).

Proceed to the ‘ranking’ section. This will allow you to rank the remaining products on one or more of the ranking options available. Within each you are able to set the level of importance as low, medium or high. The ranking options span across aspects that are contract specific (e.g. surrender values and fund link stats), fund specific (e.g. past performance of underlying funds) or company specific (e.g. the financial strength of the investment bond provider). Our 2008 study identified that the majority would consider contract specific aspects to be the most important at this stage, followed by company specific aspects.

Next click on ‘calculate’ to display the results of the ranking process. Synaptic Product Research will conduct a series of calculations based upon the selected ranking criteria and the importance level to sort the remaining products.

Individual scores for each ranking option can be viewed by clicking on the appropriate coloured tab.

You can now advance to the report selection page by clicking on the ‘report’ tab. Highlight your recommended product from the list and select your preferred report format (quick standard reports/product factsheets or full suitability report) to evidence the research and recommendation process.

Note: the product type, filtering features, sectors and, ranking options used in this example are based on those highlighted as the most typical from our 2008 study. All items selected in this example are for illustration purposes only and do not constitute professional advice. All data correct as at July 2009. Source: Synaptic Product Research.