Risk management, intrinsic compliance, tax optimization – cutting-edge features can help address these problems and more
Across the wealth industry, portfolio management has always been at the core of services that advisors offer to their clients. Among the activities that fall under that job, portfolio rebalancing – regularly tweaking asset allocations so that they don’t fall outside clients’ specified risk tolerance or objectives – is arguably the most indispensable.
But as any investment advisor knows, rebalancing isn’t so simple.
In today’s erratic and unpredictable markets, it would take extreme discipline and focus to actively steer a portfolio through the turbulence and keep it on course to achieve a client’s stated objective. That’s not to mention the need to abide by terms and conditions set out in investment policy statements, as well as satisfy compliance requirements.
The challenge is only amplified by the diversity of accounts an individual client might have – including TFSAs, RRSPs, margin accounts, and cash accounts – at any given time; practices that offer holistic investment planning for members of the same household face another layer of complexity.
Beyond that, fiduciary portfolio managers must do what they can to minimize transaction costs, accommodate different types of investment vehicles, and ensure strategies are executed in the most tax-efficient fashion possible.
For investment professionals who are still using antiquated systems and tools, the task of portfolio rebalancing might feel like a quiet thief, taking away time and resources from what truly matters: deepening client relationships, elevating their practice, and ensuring the long-term continuity and growth of their business.
On September 6, Wealth Professional will hold a free webinar with two experts from Montreal-based wealthtech firm Croesus to discuss the value-added features of next-generation portfolio rebalancing systems.
Matthieu Cardinal, vice president of business development and strategic partnerships, and Michael Blicker, senior product manager, will discuss different capabilities and strategies that can help advisors address common challenges in portfolio rebalancing, including:
- Daily task mapping;
- Portfolio modelling;
- What-if scenarios;
- Tax optimization;
- Intrinsic compliance; and
- Unified managed account (UMA) management
Once mastered, these functionalities can go a long way towards helping advisors save time, improve productivity, and boost their overall service.
To sign up for this free webinar, click here.