Practice building made easier with advanced portfolio projection models

With volatile capital markets and client portfolios significantly impacted by COVID-19, the stakes are higher for advisors. Clients are demanding clarity and higher levels of service. Luckily, technology can help. In addition to helping advisors grow their practices in a sustainable and scalable manner, technology can give advisors back another precious commodity: time.

But efficiencies can sometimes be achieved where you’d least expect. Portfolio projections powered by Economic Scenario Generators (“ESG”) represent a breakthrough improvement over models driven by Monte Carlo simulations, as we discussed in our previous article. An automated, ESG-driven institutional-quality portfolio projection and risk management platform represents a key competitive advantage and business building resource for advisors.

Automating away time-consuming portfolio tasks

Being able to provide a sophisticated analysis of risk–return scenarios for clients offers a clearer line of sight into a client goals, no matter what the market brings. Benefits include:

1. Enhanced value-added service: Advisor practices are under considerable competitive pressure amid current economic and market conditions. At the same time, clients are willing to pay fees for high levels of service: a 2019 EY survey of advisors’ clients indicated that investors were willing to pay for quality financial advice and planning ¹. An ESG-driven platform can provide that enhanced level of service to help acquire, grow and retain clients.
2. Scalability: An automated portfolio projection platform can help a practice grow without a commensurate increase in costs and/or working hours. This empowers advisors to manage a large number of client relationships and efficiently identify which clients are offside relative to their short-, medium- and long-term goals.
3. Portfolio monitoring: There’s an old advisor adage that says that the moment you print a financial plan, it dies. An advanced ESG-powered portfolio projection platform is not only a tool for creating a financial plan, it continues to monitor and follow up on that plan, and nimbly generates options for course corrections that may be needed.

Ortec Finance’s proprietary portfolio projection platform represents a comprehensive solution that delivers these benefits to advisors. In our next article, we will discuss in more detail how this solution solves the challenges of today’s market and industry environment. Visit the OPAL Wealth page and download the product brochure. For any other questions or demo request, please contact Neil Greenbaum below.

^1.EY, How do you build value when clients want more than wealth? 2019 Global Wealth Management Research Report, 2019.

Download the OPAL Wealth Brochure here