Davis Janowski covered the incredible advantages that Riskalyze Pro is bringing to investment advisors in today’s technology column for Investment News.
Riskalyze Inc. has rolled out a professional version of its free risk assessment and analysis tool for investors that I foresee garnering a lot of interest from financial advisers.
Interestingly, it was really a number of advisers using that investor-focused version in a roundabout way with their clients that formed the genesis of Riskalyze Pro (pro.riskalyze.com), which was launched seven weeks ago.
Simply put, an adviser sends an online questionnaire to a client. The questionnaire takes no more than 10 minutes to complete and is tailored to look as if the adviser’s firm devised it.
The investor is asked a series of simple questions with multiple-choice responses. Some have built-in logic that expands to ask more questions, if necessary.
Taking the inputs, Riskalyze quantitatively measures a client’s risk tolerance using the system’s proprietary algorithm. It then reports back to the adviser, who can generate any of several reports — some for meetings with clients or prospects, others for the compliance file.
We’re very bullish on investment advisors and their value to the investing process over the long term. It’s exciting to be a part of equipping them for this next wave of change in how the world invests its money.
Hurricane Sandy will make landfall on the East Coast soon. As a result, the New York Stock Exchange and the NASDAQ have announced that US markets will be closed tomorrow and possibly Tuesday.
Riskalyze will continue to work for our users just as it would during a weekend or other holiday when the markets are closed. Portfolio results will update as soon as market operations resume.
Robert Powell writes a great piece on Market Watch this morning about how advisors typically use model portfolios and “odds are high that if you’re planning for or living in retirement that this is not the right portfolio for you.”
Odds are high that if you go to an adviser to have your money managed he’ll put you in what’s called a model portfolio, typically labeled aggressive, conservative, moderate or some such term.
Odds also are high that if you’re planning for or living in retirement that this is not the right portfolio for you.
Model portfolios work for money managers and investment advisers, not so much for you.
I’ll explain. But first this disclosure: There are a at least two types of model portfolios, the kind that advisers create for the benefit of clients and the kind that institutions create, either as an investment objective such as target-date funds or fund of funds or a combination of separately management accounts.
In the case of the former, advisers will often herd their clients into model portfolios as a way to create efficiencies for their business. By putting all their clients into this or that model, it makes it easy for them to manage money, to rebalance portfolios and to increase their profit margins.
But the truth of the matter is that no one - preretiree, semiretiree, or retiree - is alike. Most have a set of unique circumstances and facts that would make it difficult if not impossible for them to be pigeonholed into this or that model portfolio.
The money quote here? That no two investors are alike. And we’re excited to be equipping investment advisors with the tools to capture client risk tolerance, and use that to select or personalize mathematically compatible portfolios for them.
Today, we’re excited to announce the next phase of Riskalyze Pro with the launch of professional-grade portfolio construction tools designed from the ground up for investment advisors.
We believe in independent advisors as a key part of the solution to make investing better for Main Street, and getting advisors out of the mind reading business will help them grow assets and protect their clients.
Advisors can use Riskalyze Pro to sift through their favorite funds or stocks, and calculate the optimal allocation for a specific client risk tolerance. The tool performs all of the correlation analysis to maximize diversification in the portfolio, and calculates the 95% probability range that the portfolio will stay inside during a six month period.
Alternatively, advisors can “lock” the allocations for some or all of the investments in the portfolio, giving them the analytics they need to show clients the risk inherent in their existing allocations, or in an advisor’s model portfolios.
Advisors can build portfolios using any publicly traded stocks, ETFs and mutual funds, and support for unlisted investments like REITS, MLPs and annuities will follow shortly. Riskalyze Pro includes several powerful performance prediction models, and advisors can drill down to dictate performance predictions at the security level as well.
Riskalyze Pro empowers independent investment advisors to replace emotion and subjectivity with the quantitative science of the Risk Fingerprint, and to focus on growing their assets and protecting their clients in three key ways.
- Building superior portfolios that pinpoint client risk expectations. The only thing that beats performance? Predictability. Meeting client expectations gets a lot easier when advisors have the ability to choose portfolios based on a quantitative measurement of client risk tolerance.
- Avoiding compliance issues with quantitative documentation of client risk tolerance. It’s time for advisors to get out of the mind reading business with these qualitative questionnaires and one-size-fits-all assessments. Our patented Risk Fingerprint technology turns client risk tolerance into quantitative math, and that’s a better world for advisors and investors.
- Turning their prospects into clients with a personalized pitch. By combining their investment ideas with the prospect’s Risk Fingerprint, advisors can start delivering value and building a relationship with prospective clients well in advance.
Today marks the second phase of a staged rollout for Riskalyze Pro, which started with client risk assessment tools and now, portfolio construction. Prospect email campaign tools will arrive out of beta in the coming weeks.
Advisors get access to all of these tools for limited-time pricing of just $99/month or $999/year. Discounts are available for multiple-advisor firms, and Riskalyze is set to launch several creative ways that advisors can access the product at no cost whatsoever.
Qualified advisors can trial the product with their clients by signing up at pro.riskalyze.com.
Since we got started building Riskalyze, our focus has been self-directed investors who manage their own money. That’s nearly $1 of every $5 of US assets. So far this year, Riskalyze has empowered those self-directed investors to build more than $1.4 billion in personalized portfolios.
Today, we’re excited to introduce Riskalyze Pro, which empowers independent investment advisors to replace emotion and subjectivity with the quantitative science of the Risk Fingerprint, and extends the reach of our technology to 45% of the market, or $6.1 trillion in total US assets.
Riskalyze Pro was designed to help advisors get out of the mind reading business, and focus instead on growing their assets and protecting their clients in three key ways.
- Turning their prospects into clients with a personalized pitch. By combining their investment ideas with the prospect’s Risk Fingerprint, advisors can start delivering value and building a relationship with prospective clients well in advance.
- Building superior portfolios that pinpoint client risk expectations. The only thing that beats performance? Predictability. Meeting client expectations gets a lot easier when advisors have the ability to choose portfolios based on a quantitative measurement of client risk tolerance.
- Avoiding compliance issues with quantitative documentation of client risk tolerance. It’s time for advisors to get out of the mind reading business with these qualitative questionnaires and one-size-fits-all assessments. Our patented Risk Fingerprint technology turns client risk tolerance into quantitative math, and that’s a better world for advisors and investors.
“Independent advisors are a vibrant part of the solution to make investing work for investors again,” said Aaron Klein, CEO of Riskalyze. “We’re incredibly excited to reach this milestone and partner with independent advisors to help them get out of the mind reading business, grow assets, and protect their clients.”
Today marks the beginning of a staged rollout for Riskalyze Pro, starting with client risk assessment tools launching today, and portfolio construction and prospect email campaign tools arriving out of beta during the next few weeks.
Advisors get access to all of these tools for limited-time pricing of just $99/month or $999/year. Discounts are available for multiple-advisor firms, and Riskalyze is set to launch several creative ways that advisors can access the product at no cost whatsoever.
Qualified advisors can trial the product with their clients by signing up at pro.riskalyze.com.
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