Kevin Price, AIF®, CPFA®’s Post

Are you relying too heavily on risk scores for your clients' asset allocation? Our latest research, “The Perils of Outsourcing Asset Allocation to a Risk Score,” challenges the status quo and sheds light on the potential pitfalls of this approach. Discover a fresh perspective on aligning asset allocation more effectively with your clients’ goals. On behalf of authors Martin Tarlie, Matthew Kadnar, CFA, James Montier, we hope you find our research valuable and look forward to your feedback. Key Takeaways:   1. For too long, the industry has been outsourcing asset allocation decisions to the risk score. This approach often results in portfolios that are disconnected from actual client goals and are unresponsive to changes in clients' financial situations. As a result, investors are not receiving truly personalized portfolios, leading to sub-optimal outcomes and the much bigger risk that clients don’t meet their goals. 2. Our research advocates for an Investment Policy Process that appropriately balances the crucial elements of time horizon, risk tolerance, cash flows, and return objectives into a dynamic, ongoing strategy that adapts in real time to your clients' changing lives and market conditions. 3. By pioneering not only technological innovation, but also process innovation, Nebo Wealth is redefining how the industry engages with clients, offering a more adaptive and comprehensive approach that seeks to improve investor outcomes #InvestmentResearch #BehavioralFinance #ClientFirst

In today’s complex market environment, focusing solely on individual assets is no longer enough. To build resilient, diversified portfolios, it’s crucial to adopt a Total Portfolio Approach (TPA). This approach doesn’t just consider individual investments but looks at the big picture—how each component contributes to the overall portfolio. At Picton Mahoney, we’re committed to empowering investment advisors to implement TPA seamlessly into their practice. To support this, we’ve developed two self-serve tools and offer tailored portfolio consulting services, making it easier to integrate this strategy into your business. Learn more at https://ow.ly/bGN130sGHJt. Here’s why TPA can be a game-changer for investors: 🔑 Holistic Perspective – Instead of focusing on single securities or strategies, TPA evaluates the entire portfolio with the goal to optimize risk and return across the board. 💼 True Diversification – By incorporating a range of asset classes and strategies, TPA targets to minimize the risks associated with overexposure to any one asset. 📊 Stronger Risk Management – TPA helps shift focus from short-term performance to long-term stability, balancing risks while still pursuing meaningful growth. 💡 Efficient Capital Allocation – TPA enables smarter decision-making by ensuring capital is allocated in line with broader financial objectives, not just individual investments. In a world where volatility is the new normal, the Total Portfolio Approach is designed to provide the stability investors need to stay focused on their long-term goals. #Investing #WealthManagement #PortfolioStrategy #RiskManagement #Diversification #TotalPortfolioApproach

In today's competitive landscape, asset managers face the challenge of distinguishing their investment strategies from the multitude of options available and standing out is paramount. One of the most effective tools at your disposal is Performance Attribution Analysis. Whether your investments are soaring or struggling, understanding the 'why' behind performance is crucial. Leverage this powerful tool to your advantage to demonstrate your investment style, showcase historical performance, and exhibit your risk profiles. Looking for ways to elevate your performance analysis? Our uANALYZE reporting platform offers comprehensive performance attribution and risk services, integrated seamlessly with IBOR accounting services. Read our latest blog to learn more about attribution analysis here: https://lnkd.in/d4vE3-x #InvestmentManagement #PerformanceAttribution #AssetManagement #InvestmentStrategy #MiddleOfficeSolutions

🔍 𝐂𝐥𝐢𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬 𝐢𝐧 𝐖𝐞𝐚𝐥𝐭𝐡 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: 𝐀𝐧 𝐈𝐑 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐏𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 🔍 In the Wealth Management industry, transparent and detailed 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐑𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬 (IR) reporting on client assets is vital for building trust and fostering long-term relationships with investors. Here’s the approach: 📊 Key Elements of IR Reporting on Client Assets: 𝐂𝐨𝐦𝐩𝐫𝐞𝐡𝐞𝐧𝐬𝐢𝐯𝐞 𝐀𝐬𝐬𝐞𝐭 𝐁𝐫𝐞𝐚𝐤𝐝𝐨𝐰𝐧: Providing a detailed breakdown of client assets across various categories, such as equities, fixed income, real estate, and alternative investments, gives investors a clear view of asset distribution and diversification. 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐌𝐞𝐭𝐫𝐢𝐜𝐬: Sharing performance metrics, including ROI, risk-adjusted returns, Net New money and benchmark comparisons, helps investors gauge the effectiveness of asset management practices. 𝐑𝐢𝐬𝐤 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭: Highlighting potential risks and the measures in place to mitigate them ensures investors are well-informed about the stability and security of these assets. 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 𝐚𝐧𝐝 𝐂𝐨𝐧𝐬𝐢𝐬𝐭𝐞𝐧𝐜𝐲: Regular, consistent reporting builds investor confidence. Transparent communication about changes in asset allocation, market conditions, and strategic adjustments fosters trust and credibility. 🚀 𝐂𝐨𝐦𝐦𝐢𝐭𝐦𝐞𝐧𝐭: FP&A professionals in the Wealth Management industry are dedicated to delivering accurate, insightful, and transparent IR reports. Data-driven insights helps investors and stakeholders understand the intricacies of asset management and make informed decisions. Its Crucial to set high standards in IR reporting to enhance investor confidence and drive the success of wealth management practices. #WealthManagement #ClientAssets #IRReporting #FinancialTransparency #InvestorRelations #DataDrivenInsights #Projectmanagement #Datawarehousing

At Mercer, we're committed to creating strategies that allow advisory firms to successfully pursue their client objectives. Watch to hear our own Gregg Sommer highlight solutions and more. #WealthManagement #markets #investment

📊 In today’s volatile market, a strategic approach to investment and meticulous funds management are more than just best practices; they are essential for wealth preservation and growth. 📈 Our team at #FlowexConsulting specializes in customizing investment strategies designed to navigate the complexities of the market, always with an eye toward maximizing returns and minimizing risk. Here’s how we can help: 🔍 Diversified Portfolio Management: By building a diversified portfolio, we aim to create a stable foundation for your investments to grow, regardless of market fluctuations. 💡 Strategic Asset Allocation: We continuously assess and realign asset allocation to align with changing market conditions and your long-term financial goals. 🔐 Risk Management: Our proactive risk management strategies are designed to anticipate and mitigate financial shocks, ensuring your investments are safeguarded. 💼 Funds Management: With rigorous oversight, we manage funds with a focus on liquidity, yield, and long-term capital appreciation. 💬 Transparent Communication: We believe in keeping our clients informed every step of the way, providing clear insights into their investments and our management strategies. 📩 DM us to schedule a consultation and take the first step towards an empowered investment journey. #InvestmentStrategy #FundsManagement #FinancialGrowth #RiskMitigation #AssetAllocation #WealthManagement

At Mercer, we're committed to creating strategies that allow advisory firms to successfully pursue their client objectives. Watch to hear our own Gregg Sommer highlight solutions and more. #WealthManagement #markets #investment

At Mercer, we're committed to creating strategies that allow advisory firms to successfully pursue their client objectives. Watch to hear our own Gregg Sommer highlight solutions and more. #WealthManagement #markets #investment

At Mercer, we're committed to creating strategies that allow advisory firms to successfully pursue their client objectives. Watch to hear our own Gregg Sommer highlight solutions and more. #WealthManagement #markets #investment

At Mercer, we're committed to creating strategies that allow advisory firms to successfully pursue their client objectives. Watch to hear our own Gregg Sommer highlight solutions and more. #WealthManagement #markets #investment