Advisors must juggle short- and long-term considerations when they make changes to their clients’ asset allocations. They have support for this process in the form of research from home offices and portfolio models that can provide guidance as advisors make these decisions. But these tools generally do not make it easier for providers to offer customized solutions to their clients. This is particularly true at the scale necessary to respond to rapidly evolving client needs and grow assets under management, and at a time when competition among advisors is rising.
“Advisors need to capture next-generation investors through innovation, scaled solutions and by meeting them where they want to be met,” says John Smith, Head of Sales of Emotomy. However, many advisors are passing on the very tools that can offer this type of support. For instance, solutions for optimizing portfolios and maximizing risk-adjusted returns through direct indexing or portfolio construction experts are currently available but are lagging in terms of their adoption by advisors.
Recently, WealthManagement.com and Informa Engage surveyed financial advisors on behalf of Emotomy to gain a better idea of the how advisors go about adjusting asset allocations for their clients and what types of information they use in the process.