How Modern Data Management Changes the Game for Wealth Management Firms

Data lays the foundation for your client experience – that’s why data collection, storage, and protection are so important. One recent study found that by 2022, 90% of corporate strategies will explicitly mention information as a critical enterprise asset.

With client expectations, SEC requirements, and company integrity all on the line, it’s crucial to have a strong data management system built around your company’s goals.

Embracing modern data management can revolutionize your firm’s data systems and create higher efficiency and flexibility every step of the way.

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Account Groups: An Upgrade Designed for Your Firm’s Efficiency

What is the All-New Portfolios Experience in Riskalyze?

At the 2021 Fearless Investing Summit, Riskalyze launched the All-New Portfolios Experience which has enhanced the way advisors navigate and interact with complex portfolios and accounts, driving efficiency in the day-to-day workflow for advisors across the platform.

The portfolio’s Risk Number, 95% Historical Range, and adaptive analytics are front and center, making it easy to set the right expectations with clients and prospects. Any time you select an account, you’ll see analytics for the Risk Number, 95% Historical Range, GPA, and more — all updated in real-time.


Introducing Account Groups

Now as fantastic as this portfolio page is, we knew we needed to make it even easier to organize and categorize your accounts in more useful ways.

Today, we’re announcing a big upgrade to the way you categorize your client accounts! The All-New Portfolios Experience now has Account Groups which helps financial advisors easily categorize all their accounts. This new feature will help you increase efficiency when working with complex portfolios and will make it even easier to find the information you need. We’re confident that Account Groups will optimize your workflow so that you have more time to spend where it matters most–with your clients.

That’s why we launched Account Groups to help you organize your client accounts. This powerful new feature will help you increase efficiency when working with complex portfolios and will make it even easier to find the information you need when meeting with clients. We’re confident that Account Groups will optimize your workflow so that you have more time to spend where it matters most–with your clients.

Perhaps you want to organize your client accounts within multi-client households — you can now easily do that.

Maybe you want to organize every account based on particular financial goals like saving for college, buying an RV, or planning for retirement. The answer is one click away.

Perhaps you want to separate each account by time horizon, like 0-3 years, 3-10 years, and 10+ years. Easy!

We’re working to better aligned this feature with our integration partners. For example, the Orion platform has the concept of Portfolio Groups. We’re currently updating the integration so that your Orion Portfolio Groups automatically become Account Groups for you in Riskalyze.

No matter how you want to slice up your client accounts, we’re giving you the power to do it in the way that’s most effective for your workflow.

Account Groups is available today for all Riskalyze users on all plans.


Meet Your Support Team

If you have any questions or feedback, our team would love to hear from you at [email protected]. Interested in seeing how you can grow your business? We’d love to meet with you to see how we can support your goals.

Book a Demo

Tax Drag: The New Competitive Advantage in Investment Management

Advisory firms are constantly looking for ways to differentiate themselves in the market to clients. If you lead a wealth management firm, or are trying to grow your book of business as a single advisor, you know the challenge of distinguishing your investment process and brand.

At Riskalyze, we’re proud to be a key differentiator for many advisory firms. For advisors using Riskalyze, there’s a solid chance that prospects that come into their office (in-person or virtually) have more risk in their current portfolio than they want or need. This happens about 88% of the time. When advisors can show them that their current advisor isn’t paying attention or doesn’t have the tools to really understand how to align them with their portfolio, that’s a powerful recipe for growth — which often leads to the ACAT form moment.

But what happens when a prospect’s portfolio already aligns with their risk tolerance?

Over the last few years, advisors have been using Riskalyze GPA to answer that question. GPA is an easy-to-understand metric that illustrates how much return a portfolio is typically delivering in exchange for its risk.

Riskalyze GPA is a relative metric, and we like to say that you can be proud of any portfolio with a GPA of 3.5 or higher. There can be good reasons to put low-GPA funds into a portfolio, particularly if you think something about the future — in an asset class, a sector, or a geo — is going to be different than it has performed in the past.

Many advisors leverage Riskalyze GPA to say “hey, your current portfolio may have a Risk Number close to yours, but you are in a 2.9 GPA portfolio when the typical solution I’ve constructed for clients is a 3.6. That’s going to give us a better chance for upside, and maximize the return you get in exchange for the risk you need to take.” The GPA is a concept clients can easily connect with, and understand that at a baseline level, the higher the GPA, the better performance the portfolio.

But let’s say that the prospect’s risk is in line, and their GPA isn’t too shabby either. Do we give up? Is this just not a client we should expect to win?

Wouldn’t it be great if we had a third lever to drive a good comparison and create the opportunity for a win?

Underneath the hood of many ETFs, mutual funds, SMAs and other investment solutions lies a massive factor that can create a very meaningful difference in an investor’s actual return, particularly when you consider the impact of compounding.

Leveraging this factor as a competitive advantage creates a massive opportunity for you to stand out, and deliver superior returns compared to your competition.


 

What is Tax Drag?

 


Tax drag is defined as the reduction of return in a portfolio due to taxes. Now we’re not talking about the basic concept of “buy something in a taxable account and the client will owe capital gains when it gets sold.” That one is pretty obvious.

With tax drag, we’re looking at the relative efficiency of how the investment solutions you use in your portfolio are managed by the asset manager. Just like high internal expense ratios drag down returns, inefficient tax management of fund holdings can have a massive impact on the ultimate returns your client realizes. Tax drag illustrates this beautifully.

But, we didn’t just put tax drag on the portfolio screen. We designed a brand new Portfolio Snapshot report, which advisors can print on a standalone basis, or as a part of the proposal or IPS that Riskalyze generates.

Advisors can quickly access a side-by-side comparison of the advisory fee, internal expense ratios, and tax drag inherent in these portfolios. In this case, we’ve even modeled that the advisory fee is higher than the prospect’s current advisor, but it pays for itself by reducing tax drag!

There’s just something magical that happens when you can save clients money on taxes. It’s one of the most powerful things you can do as a financial advisor.

Where can I find Tax Drag?

Tax Drag is coming later this year! We’ll first add it to Individual Security Analysis, Detailed Portfolio Stats, the Portfolios screen, and finally the new Snapshot report.

Subscribe to Riskalyze updates to get the latest announcements on tax drag and other product features. Join Riskalyze Labs to get an insider’s view of how you can turn fearful investors into fearless investors with our proprietary growth platform.

The Top 5 Most Common Pitfalls when Onboarding New Tech

While the finance industry has historically been slow to integrate new tech, the advances in technology (including remote work) have changed the client experience and how advisors work – forever.

Now that work forces are more distributed, advisor tech is a more essential component than ever to running an efficient business, providing top-notch service to clients and attracting prospects.

But while new technology can be a huge time-saver, the whole team must be on board with implementing it and adapting to these changes. Otherwise, your firm’s tech stack becomes more of a hurdle than a help. As a result, firms can actually become less organized and spend more time on menial tasks.

To avoid this, it’s helpful to understand the biggest pitfalls of onboarding new technology. Here’s your guide to recognizing and avoiding these common problems.

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CEO Aaron Klein’s Product Keynote from the 2022 Fearless Investing Summit

New Product Announcements from Summit 2022

Last week at the Fearless Investing Summit stage in Salt Lake City, we were thrilled to announce a brand-new suite of features and tools to the Riskalyze Platform that we know you’re going to love. Read on to learn more about all the exciting, new resources now at your fingertips!

Watch the Annual Keynote Address from CEO Aaron Klein

Unable to join us live in Salt Lake City or virtually? We’ve got you covered! Catch up on all the action from this year’s highly anticipated keynote address by Aaron Klein and watch it in its entirety for free below.

You’ll learn what’s new and what’s next for the Fearless Investing Movement, hear our exciting partnership news, and see all of our new product features and enhancements in action!

Watch the Keynote

Check Out What’s New
With Check-ins

Your favorite feature has gotten an upgrade! We’ve completely rebuilt how you engage with Check-ins, so you can see responses across your entire client base and sort them by status so you can see which clients might need your attention first. Check-ins are the most powerful way to keep your finger on the pulsebeat of client psychology, and now, they’re more accessible and actionable than ever before.

See what's New

Welcome Tax Drag!

Tax Drag is defined as the reduction of a portfolio’s annualized return due to taxes. Very simply, it’s the tax liability incurred due to distributions and capital gains in a non-qualified account.

Pretty much every investment manager talks about running a tax-efficient strategy, but very few provide metrics that are easily understood and can demonstrate the tax savings to clients. With Tax Drag, we’re measuring the tax efficiency of how securities in your portfolio are managed by the investment manager.

Introducing Account Groups

The All-New Portfolios Experience now has Account Groups which helps financial advisors easily categorize all their accounts. This new feature will help you increase efficiency when working with complex portfolios and will make it even easier to find the information you need.

We’re confident that Account Groups will optimize your workflow so that you have more time to spend where it matters most — with your clients.

Learn More about account groups

Meet Riskalyze Ultimate

We’re thrilled to introduce Riskalyze Ultimate — the firmwide growth platform to drive a consistent client experience across your advisors and alignment with compliance for every account.

Ultimate integrates into your CRM, asset platform, and financial planning workflows to get the growth flywheel spinning, drive a consistent client experience, deliver the insights to accelerate your progress, and protect your business value.

Experience Ultimate

The Power of Numbers: How Data Can Improve Your Client Relationships

Data is everywhere. It influences the ads we see, the shows we binge watch (hello, Yellowstone), the people we interact with on social media and even how we’re treated by medical professionals. The right data can be massively influential in how we experience and receive information.

In fact, 2.5 quintillion bytes of data are created each day. When we organize groups of that information into usable and insightful pieces, we’re given “big data” – which can unveil trends and patterns that aren’t obvious on the surface.

Big data changes our lives in both big and small ways. For advisory firms, big data is essential to not only knowing your clients, but interacting with them in a positive and fruitful capacity.

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The Difference Between the Buyers and Users of Your Tech—and Why It Matters

When you’re a one-person RIA, it’s easy to understand why you’ve bought your tech and how you intend to use it. After all, the same person is making both of those decisions: you.

If you’re in charge of an enterprise firm, though, deciding on the right pieces for your tech stack becomes exponentially more difficult. As a large financial institution, you have separate departments, often with layers of approvals and owners—and they can both have very different ideas about what “good tech” is all about. And while your technology team is making decisions on what applications to employ, your advisors are the ones actually using the software.

The buyers and users of tech are often in totally different arenas within your firm, so how do you get them on the same page? It starts with identifying the needs and wants of both groups to find common ground and grow connections.

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