Riskalyze and TradeWarrior Announce Integration Partnership

We’re excited to announce our integration partnership with TradeWarrior rebalancing and trading software for advisors. Here’s the press release for today’s announcement.

LAYTON, UTAH and AUBURN, CALIFORNIA — TradeWarrior and Riskalyze announced an integration between the two firms today. The partnership provides advisors with the ability to export their model portfolio data from TradeWarrior into Riskalyze’s risk analytics software. This will allow for greater efficiency and time savings for advisory firms.

"In our ongoing effort to improve advisor efficiency, we are excited to announce this integration effort between Riskalyze and TradeWarrior for the benefit of our joint clients," stated TradeWarrior’s CEO Damon Deru. "Riskalyze has pioneered a new concept in risk analytics for the advisory industry and their clients, and we are thrilled to be partnered with them."

"The integration between TradeWarrior and Riskalyze is going to be a serious time saver for me," said Matt Nelson of Focus Financial. "In one shot I uploaded over 30 model portfolios. Now I can keep my actual trading portfolios in sync with my risk assessment analytics without re-keying everything."

"It’s always great when customers drive the need for integration, and we’re excited to be working with TradeWarrior," said Aaron Klein, CEO at Riskalyze. "Advisors are already loving how they can sync up their trading with their risk engineering in just a few clicks."

TradeWarrior, Inc. was founded by investment advisors with the idea of bringing better software to the financial services industry. We were frustrated by the lack of intuitive trading and rebalancing software in the industry, so we decided to scratch our own itch and built TradeWarrior from the ground up. TradeWarrior is a Household based tax-aware trading program. It is the product of years of in-depth research on portfolio trading and rebalancing and offers all investment professionals the opportunity for powerful portfolio management tools at a reasonable price. You can learn more about the software on our website at www.TradeWarriorSoftware.com, or calling 801-295-9192.

Riskalyze is the company that invented the Risk Number™, the first-ever quantitative way to capture client risk tolerance, align portfolios to client expectations, and quantify the suitability of investments. Riskalyze works with RIAs, hybrid advisors, independent broker-dealers, RIA networks, custodians, clearing firms and asset managers to align the world’s investments with investor risk tolerance.

Introducing Retirement Maps

One of the things we’re good at as a company is distilling an idea into its most basic form, and turning that idea into a product that has a revolutionary impact.

We did it when we invented the Risk Number, and gave advisors a way to pinpoint how much risk a client can truly handle in their portfolio.

We did it again when we built the portfolio tools that help advisors win new clients with amazing risk analytics, and keep them by consistently beating the expectations game.

And today, we’re doing it all over again. We’re excited to introduce Retirement Maps.

There are many great tools to build comprehensive financial plans. If you’re looking for a tool that can analyze Social Security, calculate a personal balance sheet and set goals for acquiring large assets, our friends at FinanceLogix, MoneyGuidePro and eMoney have great solutions.

We heard advisors asking for something simpler. After they pinpoint a client’s risk tolerance and engineered the portfolio to fit, they wanted a fast, simple way to answer the question: can the client invest this way and reach their goals?

There was a big challenge to that. No matter how much computing horsepower you throw at it, Monte Carlo is still a notoriously slow and inefficient way to answer that question. We wanted to deliver far greater accuracy, but do it instantly.

After thousands of hours of research and development, our Core Technology team invented a new way to deterministically calculate the 95% probability years into the future. There’s no waiting for a long, slow recalculation: you get an interactive way to build a map for the client’s retirement right in front of their very eyes.

So you can actually lead your clients through the development of this map in real time, helping them to make the decisions necessary to achieve a high probability of success.

Retirement Maps also naturally discover held-away assets, opening up discussions to grow your assets under management. And nothing builds a prospect’s confidence like seeing that you understand how to build a portfolio that both fits their risk tolerance and their goals.

Best of all, we’ve made Retirement Maps a free upgrade for all of our existing customers, and for a limited time, a lifetime free upgrade for our new customers as well.

If you’re one of our amazing customers already, check your email for an invite to a special training session to learn how to put Retirement Maps to work in your practice. And if you’re not, join a guided tour today to learn how to get started.

Redtail and Riskalyze Launch Next-Generation Integration Partnership

Today, we’re excited to formally announce a great integration partnership between Riskalyze and Redtail. These two Sacramento-based technology companies are both focused on serving great financial advisors, and we can’t wait to see how our customers put this integration to work.

Here’s the press release…

SACRAMENTO — Redtail, the industry leader in advisor CRM, email and imaging, and Riskalyze, the company that invented the Risk Number, today announced a next-generation integration partnership that delivers incredible tools for advisors to grow their practices.

Under the integration partnership that is live for all Redtail and Riskalyze advisors, it’s simple to link one or more Redtail contacts into a Riskalyze client profile. On a nightly basis, the custodial assets sync over from Redtail into Riskalyze. In addition, the client’s Risk Number, and the risk score for their assets sync over to Redtail.

“We were definitely excited to roll out this integration for advisors using Redtail,” said Brian McLaughlin, CEO of Redtail Technology. “Riskalyze has introduced an incredibly efficient, accurate and user-friendly tool into the advisor tech sector that allows advisors to pinpoint their clients’ risk tolerance levels while also determining how much risk a given portfolio actually has. The integration is available now within all Redtail databases and can be sampled for a few clients, allowing advisors to see just how transformative this tool might be for their business.”

“We love the passion and excitement that we see in every Redtail advisor to make their business work for them, instead of the other way around,” said Aaron Klein, CEO at Riskalyze. “Redtail has built a truly advisor-centric approach to CRM that fits beautifully with the Riskalyze model of helping advisors win new clients with amazing risk analytics, and keep them by beating the expectations game.”

Redtail Technology is a leading provider of web-based Client Relationship Management (CRM), paperless office and email archiving solutions in the financial services industry. Easily affordable, easy to implement and offering integration with many of the industry’s most widely-used applications, Redtail is committed to providing financial advisors with the core technologies that drive their day-to-day operations. CRM is ultimately about not only acquiring and managing your clients and prospects – it’s also about servicing them and, in turn, extracting value from the relationships. At the same time, it’s about doing all of these things while simultaneously improving operational efficiency. Visit www.redtailtechnology.com for more information.

Riskalyze is the company that invented the Risk Number™, the first-ever quantitative way to capture client risk tolerance, align portfolios to client expectations, and quantify the suitability of investments. Riskalyze works with RIAs, hybrid advisors, independent broker-dealers, RIA networks, custodians, clearing firms and asset managers to align the world’s investments with investor risk tolerance.

If you need assistance getting your Redtail and Riskalyze accounts connected, email support@riskalyze.com. We’re here to help!

What to Do About GOOG

By Michael McDaniel
Chief Investment Officer

If you haven’t heard, Google is shaking up its stock with effectively a 2-for-1 stock split, but the new shares you get are a new class of stock called “C” shares. The move is designed to keep Google’s founders in voting control of the company for the long term, even as they issue more shares for acquisitions or employee compensation.

The result is a strange anomaly — while Google’s overall value won’t fall, the market data for their shares would show an overnight 50% drop, and can’t be adjusted using the normal system for splits.

As a result, we’re doing the adjustment manually, using a split-adjusted version of GOOG’s past history for both GOOG and GOOGL. Eventually, the fresh data for both stocks will be long term enough to allow us to remove this manual tweak and let the pure data feed speak for itself.

Disruptive innovation is generally a great thing for shareholders, but this is the kind of disruption that’s a little tougher to navigate! If you have questions, don’t hesitate to let our Advisor Success team know. We’re here to help.

Taking the Next Step in Portfolio Risk Modeling

Today, we’re excited to announce the launch of several key enhancements to the data model we use to calculate the risk in portfolios, the user interface for controlling that data model, and several new one-click stress tests you can run on your portfolios.

First, we added several enhancements to the data model. We now detect bond holdings, and we correlate those interest rate-dependent investments to the 10 Year US Treasury Rate. No need to turn on the interest rate stress test to see the analysis in that light any more. And we also detect tactically managed funds and have improved how we assess their risk.

Second, we rolled out a brand new interface to control the data model assumptions in your portfolio.

The default scenario, Long Term Consensus, is the same scenario we’ve always used for the S&P 500 — a long term annual gain of 10.4% (including dividends). Because interest rates, managed by central bankers, have no long term consensus per se, the default is “flat.”

By the way, notice that you can actually see what the Risk Number for the portfolio would be, without having to select that scenario and let the portfolio recalc! We know that’s a big time saver for some of you who love stress testing.

Third, we’ve added several one-click stress tests you can run on your portfolios. The +100bps rate hike keeps the status quo for the market, but raises interest rates by 1%. The 2013-like and 2008-like scenarios apply the S&P and interest rate changes for those quite-opposite market years.

Remember — if you want to see how these assumptions calculate into any individual investment, simply click the arrows beside each one to pop open and see the best case / worst case, or return / volatility calculations for that individual fund or stock.

We hope you enjoy how simple it is to understand and control the underlying assumptions in your portfolio risk calculations. These changes are now live for all Riskalyze customers.

© 2014 Riskalyze, Inc. All Rights Reserved. All trademarks are owned by their respective companies.