In a challenging time marked by market volatility, client concerns, and public uncertainty, firms can feel a need to provide the most value for those that they serve. In current market conditions, being able to effectively manage portfolios at scale today will definitively result in deeper client relationships tomorrow.
You and your advisors are under tremendous pressure right now, as you work to manage extreme volatility and near-bear markets in the present atmosphere. However, environments like the current one are also where your firm and your advisors can add the most long-term value.
What can you do to help your advisors manage the fears of clients and keep them on track to achieve their long-term goals?
- Enable trading & rebalancing at scale. Easily adjust clients’ asset allocations or strategically manage drift across tens or hundreds of thousands of accounts in minutes (not days or weeks). Executing trades successfully and without delays calms clients’ concerns in tense and uncertain times.
- Rebalance based on specified drift tolerances, as opposed to time or emotion. Establishing drift tolerances enables advisors to react in an informed manner and minimize risk for clients and the home office.
- Allow the capability to tax loss harvest at scale. Take advantage of tax lot granularity to generate tax alpha for every advisory client or household. Managing to keep clients properly allocated while harvesting losses leads to positive and productive conversations.
- Maintain oversight to help manage risk in a higher-risk environment. Employ rules-based controls to ensure proper execution of advisor-directed trading and advisor-constructed models.
- Learn from your best advisors, by leveraging data to uncover best practices that can be shared with every advisor in your firm, when the dust inevitably settles.
- Offer more time to your advisors to spend with distressed clients and prospects, by employing an innovative and consolidated platform. Help them spend their days talking with clients and not fighting trading and reporting systems.
- Provide scalable options functionality to your advisors. Enabling your advisors to block trade protective puts helps them to execute efficiently for their clients and hedge risk in difficult market conditions.
Vestmark has enabled firms to be prepared for volatile market conditions in these ways for nearly two decades, and we would like to help you too. Please reach out if you want to learn more about our solution or if we can help answer questions on how to best leverage your existing portfolio management technology to scale your business to meet its demands in these volatile times.
Let us know how we can help.
By Amanda Beitler, Associate Marketing Analyst