[Case Study] Advisor Enhances the Client Experience

This article briefly describes one of our clients and shares their experience using Portformer and other technologies to address their specific client needs.

This particular advisor is the owner of a third-generation financial advisory firm located in the Midwest that is approaching $100M+ in AUM. His firm provides comprehensive financial advisory services including insurance and there is one advisor with 2 support staff. The firm is a technology-centered practice including portfolio reporting, CRM, research services and risk oversight through Riskalyze

Needs of the advisor

The firm is considering an update for their fund selection with the recent announcements of zero-fee funds and hoping to bring efficiency to the investment review process. The available fund choices have expanded and the current process is manual and time-intensive even with the use of a well-known research service. The firm charges a traditional management fee schedule which also includes all transaction fees, ticket charges and expense ratios for the funds invested. So they have a fiduciary responsibility to review any change that may impact the client.

The advisor participates in a study group where they share their tech experiences and findings with one another. Some of the advisors utilize a different research and analysis service through their fiduciary designation, Fi360, but its effectiveness has been inconclusive.

By driving efficiency into the portfolio analysis process for mutual funds / ETFs, the advisor has more time to ensure the investment decisions are in the best interests of the client and make portfolio adjustments through the reablancing tool.

The advisor has had a favorable client response to the use of a risk score in the case of Riskalyze. It brings clarity to the client experience and refocuses the meeting on financial planning events. The advisor is keen to find a similar type of measurement within the investment technology suite. 

The advisor has many clients who have insurance/protection needs and are in the decumulation phase of their financial life cycle. So the need to maintain a specific level of liquidity, for planned or unplanned needs, is very important.

How the advisor uses Portformer

The solution for the advisor is to utilize Portformer to analyze the universe of funds to discover and incorporate the best selections of the zero-fee ETFs quickly. Portformer complements the use of Riskalyze and generates significant time savings in the investment process by helping provide the suggested fund alternatives that Riskalyze then scores. The advisor has been satisfied with the results and also plans to introduce the tool to their study group. The Portformer Replacement Score has facilitated better communication of investment decisions to the client and has shown to be a more robust tool providing faster analysis. 

The advisor is further engaged with the Portformer’s Lowered Capital Estimate, which is an indicator of the portfolio’s capital efficiency and helps generate flexibility in potentially redeploying capital within the client’s taxable or retirement portfolio.

John DiBenedetto

Sales | Business Development | Customer Success

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