How to Choose the Right Portfolio Management Technology

So many firms are beginning to realize that portfolio management is one of their largest operational expenses. The cost of the software, integrations, staff labor time, and labor time of outsourced providers adds up. If you want to produce performance reports for your clients, here are a few items to consider. Click the image to watch the video!

"Decide what you DON’T want or need first. Then research the tech that meets your wants and needs."

The first is the concept of household performance versus asset-level performance. We typically ask firms whether they want household performance or asset-level performance because this decision makes a very big difference in the technology you use and the human labor of reconciliation.

The second thing to consider is PDF versus portal. Do you want a PDF that you can mail, email, or share securely with a client, or do you want the client to go into a portal and see the performance there where they can also navigate and run their own reports?

The third thing to consider is frequency. How often do you want to report performance to your clients? Do you want it every day? How about weekly, monthly, or annually? This determines the technology as well as the cost.

The fourth and biggest consideration is the question of values versus percentage return. Do you want to produce performance in terms of values or percentage return? When we say “performance,” we all understand it, but clients in general don’t understand that calculation. It’s difficult for them, so some firms have reverted to giving balances, or values. Think of it as your net worth statement: today you’re worth $500,000; tomorrow you’re worth $510,000.

Stay tuned for more videos where we’ll dive into this discussion further. In the meantime, if you have any questions, please don’t hesitate to reach out to me. I’d be happy to assist you.

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