Innovative Goal-based Investment Management (GBWM)

In spring 2019, the Thurgauer Kantonalbank (TKB) successfully introduced the latest investment technology – “Goal-Based Wealth Management”.

The innovative Goal-Based Wealth Management (GBWM) approach of the swissQuant Group bridges the gap between financial planning and a consistent investment allocation. Client profiling becomes an interactive experience centering on the client’s goals. Together with her/his advisor, the client records the financial situation, develops an individual optimal target plan and immediately receives a visual evaluation of the probability of achieving the goals. Thanks to the innovative algorithms of swissQuant Group and the technical implementation by Avaloq, the method pursues a dynamic approach to determining the optimal investment strategy over the selected time horizon: the client only assumes as much risk as is necessary to achieve his goals. Factors such as the time at which the goals are achieved, the starting capital, regular incoming and outgoing payments and risk tolerance are taken as a basis. In particular, a highly consistent long-term optimization protects the client from excessive pro-cyclical behavior.

The continuous monitoring of the investment completes the client experience in the investment advisory service. The GBWM approach ensures that the client can adapt the goal journey at any time by weighting and intercepting unwanted risks. The GBWM approach is also successfully used for individualized client portfolios.

Further information can also be found on the website of the Thurgauer Kantonalbank, see here.