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 firstname.lastname@example.org. We’re here to help!
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.
We heard you…the grid of “cards” for each of your clients looks really nice when you first start using Riskalyze, but as you add more clients, it quickly becomes difficult to navigate and find the client you’re looking for.
And with some advisors managing 200 clients and up in one advisor account, something had to change.
We listened, and as of this afternoon, as soon as you go past ten clients, your Riskalyze home screen will automatically transition into the new client list view that looks a little something like this.
Stay tuned for some more upgrades coming down the pike: specifically, some really cool search, sort and filter tools for your client list. For now, remember that you can search by hitting Ctrl+F or Command+F in your browser.
Thanks for your feedback…we’re always listening and we love hearing ways we can make your job easier as an advisor!
After hundreds of hours of design, development, advisor input and usability testing, we’re excited to announce the launch of the next-generation Riskalyze risk questionnaire.
There are three big innovations in the next-generation Risk Questionnaire.
Two Versions of the Questionnaire. You’ve seen our existing quantitative approach, built on Nobel Prize-winning science, that captures a detailed Risk Fingerprint for each client. Now advisors can choose a simplified version for clients who might be elderly or have simpler needs. And it’s just as easy as ever to engineer portfolio risk to fit those clients.
RQ, Phone Home. Now your clients can answer the Risk Questionnaire with a few taps on their iPhone, Nexus 5, Samsung Galaxy, Moto X or other Android device. It’s a beautiful design, and if they get stuck, they can email or call your office with a single tap. (Of course, the Risk Questionnaire has always worked on iPad or Android tablets.)
Using Risk to Generate Leads. With a simple link or a few lines of code, you can embed the Risk Questionnaire into your own web site, creating a new way for prospective clients to engage with your firm, send you their risk tolerance, and ask for a portfolio analysis to see if they’re on the right track. With a few clicks, your web site transforms from a brochure into an active tool that generates new business.
The new Risk Questionnaire is live for all Riskalyze customers as of today. The Lead Generation version will be activated for customers over the course of the next week.
To join a guided tour and see Riskalyze in action, just click here to RSVP.
Quantifying the risk in portfolios involves a complicated set of mathematical and methodology choices that we are always working to improve for our advisors. Today, we rolled out several adjustments to our methodology to enhance the performance of two key features — portfolio analytics and interest rate stress testing.
First, we made an adjustment to how we account for dividends in a portfolio. We now add dividends into expected return for each security after normalizing returns for the long term, to avoid the washout of dividend effects for low-beta investments.
For portfolios with high dividend-yielding funds or stocks, advisors will likely see a reduction of 2 to 4 points in the portfolio’s risk number. The largest drop we’ve seen — generally when portfolios are filled with low-beta, high-dividend investments — was 9 points on the Risk Number scale.
This is an exciting improvement that we believe will be even more accurate in showcasing the value advisors place on dividend yield in client portfolios.
Second, we made an adjustment to how we stress test portfolios for interest rate risk. We now use the last six months of returns to correlate the sensitivity of each individual security to that period’s movements in the ten year treasury rate.
Because we’re using tighter data points for interest rate stress testing, this improvement will increase the relevancy of the interest rate stress test for actively managed funds, the style drift of active managers and younger funds with less history. It will also more quickly reflect changes to Fed policy or movement in interest rates.
These two changes are a part of our constant efforts to make Riskalyze more effective for our advisors. If you have any questions about these adjustments, don’t hesitate to let us know. We love being a small part of your success!