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 firstname.lastname@example.org 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.
One LPL advisor in New York is using Riskalyze to determine which “separately managed account” product is the right fit for his clients and prospects. He uses the Cougar Global Investments SMAs on the LPL Model Wealth Portfolio platform. There are four SMA products: Cougar 6, Cougar 8, Cougar 10 and Cougar 12.
The advisor added each of the Cougar SMAs in as individual model portfolios, using the methodology on the Riskalyze Knowledge Base for adding SMAs using the Custom Investment button. He allocated 100% of each model portfolio to that respective SMA.
Two things stuck out at the advisor.
First, by looking at the real risk behind the four different Cougar funds, it turned out that Cougar 12 has slightly less risk than Cougar 10. That was a surprise to the advisor, who expected that the funds had a “stair step” of risk tolerance with their higher numbers. Investment objectives do not always equal true risk.
Second, it became much easier for the advisor to figure out which Cougar fund was closest to his clients. After capturing their Risk Number, Riskalyze points the advisor to the closest model.
Whether SMAs simply overweight and underweight sectors, or use a purely tactical strategy to try and achieve returns in any market, Riskalyze provides a simple way to quantify their risk and match clients to the product that most closely fits their risk tolerance.
The envelope just arrived on your desk. A prominent endowment fund just sent you a request for proposal. This is a huge opportunity to land a premiere client and could lead to a boatload of business from board members and associates of the organization.
So here’s the plan: let’s separate yourself from the competition by exhibiting your skills as a risk manager. Here are the steps to take:
- Request a face-to-face meeting with the endowment’s Investment Policy Committee (IPC).
- Walk the IPC through the Riskalyze risk questionnaire, with the help of a projector or large screen in a conference room.
- Ask the IPC to confirm the “comfort zone” presented at the end of the completed risk questionnaire. Retake the questionnaire if needed, after adjusting the devastation amount, until the committee comes to a consensus on the comfort zone.
- In your proposal, build a target portfolio using a mix of existing holdings and new investments as you see fit. Adjust the allocations until the portfolio’s Risk Number fits the IPC’s.
- Present a proposal to the IPC that is perfectly aligned with their risk tolerance and expectations. Demonstrate that you understand how best to manage their institutional risk while driving positive returns.
- Sign the paperwork and bring on this amazing new client!
By the way, don’t forget to shake hands with each IPC member after the meeting, and offer to do the same risk tolerance and portfolio review for them personally. That’s the power of multiplication at work.