In this article written for the Advisor Advocate, AdvisoryWorld discusses how registered investment advisors may benefit by using dedicated proposal generation technology.
Today’s investor is accustomed to customized and targeted marketing. Your prospects and clients are inundated with targeted ads based off their locations, past purchases, search history and “follows” on social media. Now they may expect similar communications from you. Because of this change in expectations, you may benefit from investment proposal software allowing you to customize prospect interactions to target each individual while satisfying compliance requirements.
Generating Custom and Targeted Proposals
Here are areas where RIA financial software might help you analyze investor risk and portfolio performance characteristics, design and implement investment strategies and generate client proposals:
- The Risk Profile. Gathering data on risk from your prospects can allow you to establish and ultimately illustrate a lasting risk profile for your proposal and future client interactions. A risk assessment process can specify quantitatively how much risk the investor is willing to take in loss of principal for any 12-month period. The process should also permit you and your client to modify the score to adjust for a willingness to accept more risk in order to achieve a more important goal.
- Financial Objectives. You should be able to establish financial objectives and incorporate those objectives into your final proposal product.
- Current Investment Analysis. You’ll want to easily import a prospect’s current positions from third-party platforms to help you efficiently review the risk/return metrics of these positions.
- Recommended Allocation of Assets. You might be able to benefit from software with pre-defined model allocations that suggests optimal asset allocations for your clients and prospects based upon their calculated risk tolerance.
- Recommended and Current Portfolio Side-by-Side Analysis. You might want to compare diversification metrics, such as industry exposure and style analysis, and contrasts trailing returns and modern portfolio theory statistics for the recommended allocation vs. the individual’s current portfolio in graphical and tabular form.
- Customized Proposal. Ultimately, you might want to generate a customized proposal and/or investment policy statement. That could also include a page where advisors can include information on their background and their firm and a description of their approach to financial advisement.
AdvisoryWorld provides investment analytics, portfolio modeling, and proposal generation technology for the financial services industry and offers software that incorporates each of the features and applications described above. Their technology tools are fully customizable and are delivered via off-the-shelf web applications, API, and professional services. Founded in 1987, AdvisoryWorld is headquartered in Los Angeles, CA, and currently services over 30,000 investment professionals nationwide. For more information, please visit www.advisoryworld.com.*
You can explore the Scottrade® Strategic Resource Center to connect with AdvisoryWorld and other organizations that specialize in technology, compliance, research, education and marketing. Many of these resources offer discounts to financial advisors who custody assets with Scottrade. (Scottrade provides this resource for informational purposes and does not specifically endorse any of the businesses within the directory. Scottrade also does not pass judgment as to whether those services are appropriate for specific business needs. Be advised this is not a full and comprehensive list of businesses that offer these types of products or services and that advisors are responsible for doing adequate research before making any purchases.)
Join a Webinar to Learn More
To learn more about how AdvisoryWorld technology might benefit your business, you are invited to register* for AdvisoryWorld’s webinar “AdvioryWorld – Implementing a Streamlined Proposal” on Wednesday, October 26 at 4 p.m. ET.
* By clicking on this link, you understand you will be redirected to AdvisoryWorld, a third-party website operated and maintained by AdvisoryWorld. Scottrade and AdvisoryWorld are not affiliated. The AdvisoryWorld website contains information that may be of interest or use to the reader. Third-party websites, research and tools are from sources deemed reliable; however, Scottrade does not guarantee accuracy, completeness or timeliness of the information, is not responsible for statements, offers or products issued, and makes no assurances with respect to the results to be obtained from their use. No information presented constitutes a recommendation by Scottrade or its affiliates to purchase any product or instrument discussed therein or engage in any specific strategy. Please research any product or service carefully before purchase.
The information and content provided is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product, or an endorsement or affirmation of any specific investment.
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