By Michael McDaniel, Chief Investment Officer
Many advisors get an invitation to an investment club, and turn them down. “Why would I go share my knowledge with a bunch of guys who think they are fine managing their own money? Forget this.”
Don’t turn down that next invitation. Let’s leverage it to win a bunch of new clients.
One of my clients belonged to such a club, and she asked me to “look into a stock” that her club was thinking about adding to their portfolio. I asked a few questions and discovered that her club included about 40 high net worth households who enjoyed getting together at a local restaurant to discuss wine and stocks. (Who doesn’t like to mix dividends with a dry Riesling?)
I offered to provide a fundamental analysis of the stock in question, a risk review of the club’s existing portfolio, a risk tolerance analysis for each club member, and a demonstration of the risk questionnaire for the entire group at their next meeting.
Taking the podium a few weeks later, I felt fully armed. Running through the risk questionnaire was a hoot. Presenting the results was exciting and generated a lot of discussion. And the discussion got even more animated when we looked at the six month probability range for the club’s portfolio.
Suffice it to say, club members got the distinct impression that I was more than just a guy hawking mutual funds who kept 100 bps of their money. For the first time, they saw that their advisor could offer tremendous value as a risk manager. My signup sheet was full of members who wanted to give their personal portfolio a risk review.
I went to those meetings with ACAT forms in hand…and I wasn’t disappointed.
We’re excited to announce yet another new partner. It’s not every day that two companies in the same city get the chance to make history together. We’re proud to be working with Pathway, which was founded by the co-CEOs of the iconic Hanson McClain Advisors.
SACRAMENTO — Two Sacramento-area firms, Pathway Strategic Advisors and Riskalyze, today announced they have formed a strategic partnership intended to revolutionize the way retirement plans are invested. Pathway is rolling out Riskalyze Pro as the business development, proposal and risk management system for all of Pathway’s retail channel advisors.
Pathway was founded by Scott Hanson and Pat McClain, co-CEOs and founders of the Sacramento-based investment advisory firm Hanson McClain Advisors, known for innovative practice management and investment solutions. Pathway was created to help participants with 401(k), 403(b) and 457 retirement accounts maximize the money in their employer-sponsored defined contribution plans.
Riskalyze’s patented Risk Number™ technology will assess the risk tolerance of each Pathway client, allowing solicitor advisors to more precisely align those clients with their closest Pathway model portfolio. Riskalyze will also help Pathway advisors to better demonstrate the relative risk between clients’ existing 401(k) allocations and the benefits that the Pathway approach can bring to their investments.
"Riskalyze is yet another example of how Pathway is committed to combining high quality investments with the latest technology to deliver a sustainable advantage to our clients and advisor network," said Scott Hanson. "It’s long past time that 401(k) investors had the same level of access to professional investment advice as do general market investors, and Pathway is committed to helping them receive that level of guidance."
"Scott Hanson and Pat McClain are well known both locally and nationally," said Riskalyze CEO Aaron Klein, adding, "We’re proud to partner with such an innovative team, working through both the retail and advisory channels to strengthen this country’s retirement future."
Riskalyze is the company that invented the Risk Number™, the first-ever quantitative system for identifying client risk tolerance, aligning portfolios to client expectations, and quantifying the suitability of investments. Riskalyze works with RIAs, hybrid advisors, independent broker-dealers, RIA networks, custodians, clearing firms and asset managers to better align investments with the tolerances and expectations of individual investors.
The role of an advisor is a paradox. On the one hand, clients want their advisors to “take care of their money,” but on the other hand, it’s impossible to do that job without engagement, agreement and buy-in from those clients.
One way that advisors have been building that engagement is to use an Investment Policy Statement to discuss and build agreement about the direction of a client’s portfolio. The IPS illustrates the facts we know about the client, and showcases the direction we’re going to take a client’s investments.
Today, we’re excited to announce that Riskalyze now makes it possible to create this roadmap for your clients with a single click. We’ve built a printable Investment Policy Statement that is simple and understandable, yet includes all of the key elements advisors need in that document.
And here’s the best news of all. While the Investment Policy Statement will be an add-on product in the future, every single Riskalyze customer just got a lifetime upgrade to the IPS — completely free. And for a limited time, every new advisor who joins Riskalyze will get the lifetime upgrade, too.
There may be some advisors who have more comprehensive needs in an IPS document. We made the choice to err on the side of simplicity for a key reason — the best guidance we have from FINRA is that understandability trumps detail every time.
That being said, we’ve already provided customization services to several customers. If you’d like to do the same, let us know and we can make it affordable to get exactly the report you want for your business. (We also intend to increase your ability to customize the report over time.)
We’ve also shipped a variety of other improvements all over Riskalyze.
- Reports now generate in PDF, making it easy to save any report into your CRM, or send it to your clients electronically. (This is live for some customers, and will be rolling out to all customers over the next few days.)
- Client profiles were redesigned to make it simpler and easier to manage client portfolios.
- We added a self-completing checklist for prospect meetings and client reviews, so you can see what’s next for each client at a glance.
Finally, we’re excited to share that we’re making some big investments in your success. We’re in the process of hiring a new team member to run Advisor Success, allowing us to deliver even more training, support and assistance to make you a more successful advisor.
We’ve also rolled out the ability to RSVP for any of our upcoming Advisor Success events right inside the product. Just click on your own name in the upper right hand corner, and click Help. Then choose the Advisor Success date you’d like to join us for, and you’ll get an email with the link to join the online event that day!
Just about all of these improvements and new features are now live for all Riskalyze customers. If you’d like to learn more about how we turn risk into an advisor’s best friend, RSVP to join us for a guided tour.
We’re excited to be a small part of your success!
The big news today is about the rollout of Investment Policy Statements in Riskalyze, but we have three other improvements that are either live in your account, or are in the process of rolling out to you.
First, we designed the client profile to make managing portfolios simpler. We have a lot of features coming down the pike that rely on knowing which portfolio is which. We had introduced a way to “tag” portfolios as active, target or existing, but ultimately, that required work on the part of the advisor.
Today’s redesign eliminates that work by introducing a simpler structure. Your prospects can only have one existing and one target portfolio at a time. Your active clients can only have one active and one target portfolio at a time.
This will be a much easier way to manage client portfolios in the future. Our existing customers may need to make a few adjustments in the transition. Here are some tips.
- The most recent active, target or existing portfolios (by date) will be the ones that you see when you open the client profile. Any older ones are still there! Just click “Show History” and you can still access the older ones.
- If an older one should be the current portfolio, just duplicate it. It’s newer date will put it at the top of the list and make it the current one.
- You may have some portfolios that had no “tag” at all. They are temporarily under a section in that client profile called “Portfolios to Sort.” As you need to, it takes just a couple of clicks to sort those portfolios into the right section.
We know there are some advisors who keep multiple active portfolios to track accounts separately (e.g. 401K, IRA, college savings). 90%+ of our advisors don’t follow that approach and household all of the accounts together before bringing them into Riskalyze for analysis. Ultimately, we had to make this choice to keep the product simple and easy to use.
If you prefer to keep things separate, that’s no problem at all — just add a label to the client’s last name like (401K) — and then make a new client for (IRA), etc. Then, shoot us a quick email to email@example.com and we’ll help you move the portfolios from one client profile to another.
Simplified client profiles definitely make Riskalyze more delightful and easier to use, but we’re also excited about the features that we can build by understanding more about the data you’re putting into Riskalyze. Stay tuned.
Second, we’ve transitioned our reporting engine to PDF format. This was a big technical lift, but a very needed one. We had more than a few customers struggling with long portfolios that didn’t have very intelligent page breaks, etc. There still may be a few tweaks that we can make to improve each report, but now we have the technical framework to make it possible.
If you go to a client with an active or target portfolio and click the Print IPS button, you’ll definitely be seeing the new print functionality. It pops open a new tab and generates a PDF file that you can either print, save to your desktop or your CRM, or email to a client.
If you’re not seeing a PDF yet on the Portfolio or Risk Questionnaire reports, the upgrade just hasn’t rolled out to you yet. We should be at 100% by Thursday.
Third, we’ve added checklists. At the bottom of a client profile, you’ll see a simple, self-completing checklist for the common steps advisors do with Riskalyze for prospect meetings or client reviews. Every advisor’s process is a bit different, but this is a nice way to see at a glance what the typical next step is for each prospect or client.
The last step of the checklist is when you complete your meeting with the client, and it’s a quick simple way to update the client’s status and activate monitoring for the right portfolio.
We hope you love all of the new enhancements. There’s a lot more on the way, including some of your most-requested features. Stay tuned!
We were pleased to jointly issue this press release with yet another great firm that we’re excited to be partnered with. Felipe and his team at CONCERT are some of the best in our industry.
SAN JOSE, CALIFORNIA and SACRAMENTO, CALIFORNIA — CONCERT Advisor Services, one of the industry’s fast-growing advisor services platforms, and Riskalyze, the company that invented the quantitative Risk Number™, today announced a new partnership to bring the benefits of Riskalyze technology to CONCERT advisors.
Riskalyze was founded in 2011, and its patented Risk Number technology allows advisors to quantitatively capture a client’s risk tolerance, align client portfolios with their expectations, and scientifically quantify the suitability of investments for clients.
CONCERT is an innovative firm that combines an advisory network with a unique advisory services and technology platform. With drag-and-drop portfolio integration between Riskalyze and the custodial platform used by CONCERT advisors, the firm’s advisors can instantly realign portfolios to fit individual client needs.
"The opportunity to work with CONCERT is an exciting one," said Riskalyze CEO Aaron Klein. "Felipe and his team are building the next generation platform for advisors, and we’re excited they saw Riskalyze as a key piece of their puzzle."
Riskalyze technology will also help CONCERT advisors to grow AUM, by helping to turn a prospect’s existing statement into the best sales tool advisors have ever seen. Because clients play a role in generating their own Risk Number, the ability for advisors to illustrate relative risk between portfolios is a powerful tool for bringing on new business.
"Riskalyze is yet another example of how we’re equipping our advisors to be leaders in the industry," said Felipe Luna, CEO of CONCERT. "From our CRM platform, to the back office and compliance support, to our entire network of advisors, we’re built for growth and helping advisors achieve great results for their clients."
Advisors can join a guided tour of Riskalyze at Riskalyze.com, or call toll free at 1-855-2-RISKALYZE. Advisors interested in joining the CONCERT family can visit CONCERTAdvisorServices.com.