The investment strategy that you design and implement for your clients typically includes a target asset allocation. Beyond this, you monitor how a household is tracking against a target allocation among several accounts or different clients within that household.
You may also monitor how your overall advisory practice performs in terms of allocating to a particular asset class or investment factor. With markets at all-time highs and regular episodes of volatility, it’s now more important than ever to be alerted when there is a significant variance and make adjustments if needed. Your clients count on you for this -this is providing value. Otherwise, there are plenty of DIY routes they can proceed with on their own these days.
AdvisorPeak software can help you stay ahead of variance analysis.
Accounts and households.
Client accounts are generally managed against a target asset allocation, often against a model portfolio used by your RIA firm. Having an automated variance analysis tool is crucial to ensuring nothing is overlooked.
Household target allocations work extremely well for clients with several accounts, including taxable accounts, IRAs for both spouses, etc. Your primary concern should be monitoring the overall asset allocation of the entire household. While our software alerts when the household allocation varies by a given percentage from the target allocation.
Say you may want to monitor the level of a specific security for a single client, or several clients in some cases. Perhaps this is the stock in the company your clients work for, or you want to be sure the security does not become an overly concentrated position for the client. Our software tracks variances in a single security.
Asset class and factors.
Or if you want to track a particular asset class or investing factor for a client or across your entire client base, then our alerts ensure that if the allocation to the asset class or investing factors falls outside a set percentage, you are notified to take action quickly.
Another type of variance you can track is at the individual advisor or practice level. If you are using one or more model portfolios across your practice, then you can set alerts at the firm level for all clients using a model.
Our goal at AdvisorPeak is to provide solutions for enhancing current variance analysis capabilities for quick referencing. Our revolutionary variance tool provides a greater understanding of variances in client portfolios. Contact us to find out how our platform as a service (PaaS) software can help your practice address variance analysis.