This is part of a FolioDynamix blog series on “Getting to Know the FDx SingleSight Platform,” which is designed to introduce you to new tools and best practices for growing your wealth management business.
As a wealth management firm, the first impression you make is critical to the client relationship – starting with the Prospect & Onboard phase of the wealth management lifecycle. Investment proposal generation and the investment policy statement (IPS) are often a big part of that first impression and can determine whether or not you earn a client’s trust and business. How do your proposals measure up? One size fits all? Not enough detail? Too much detail? Does each proposal effectively illustrate each client’s unique current financial situation balanced against a proposed solution that clearly meets their needs and risk tolerance?
The following facets of your business must be taken into consideration when improving proposal generation and client onboarding processes:
- Investment programs. Clients expect options and any proposal system must be flexible enough to accommodate multiple program types in a single proposal with the ability to reflect a household-level view (UMH). Programs can include unified managed account (UMA), separately managed account (SMA), mutual fund wrap (MFW), rep as advisor, etc., all of which should ideally be managed from a single platform.
- Investment models. Firm-specific models should be incorporated into the platform for display in the report output. If needed, FDx Advisors (our registered investment advisory subsidiary) can assist in both product selection and investment model construction.
- Investment products. UMA models, third-party strategists, mutual funds, and exchange traded funds (ETF) are examples of products that are needed to remain competitive as more clients look for open architecture choices. Also look for a solution that can accommodate your internally recommended and researched products. The platform should allow for flexible advisor choice or a locked down program for mandatory selection so that you can maintain the desired level of control and governance.
- Investment Risk Tolerance Questionnaire (RTQ). Detailed or general, you should be able to offer multiple questionnaires with various scoring outcomes.
Often technology is necessary to achieve the right balance of efficiency in crafting proposals while also giving advisors the ultimate flexibility in tailoring solutions. The most effective investment proposals align with the corporate guidelines and infrastructure of the home office, while also offering advisors the flexibility to adapt and present customized solutions to various clients.
Stay tuned for a continuation of this blog post – Part II: The Technology.