Since the onset of 2022, the markets have been suffering losses. While all investors are impacted, many are wondering what their advisors and investment managers are planning to do to erase any losses and position them for gains. Topping the list of concerns are: Inflation, rising interest rates, fear of a recession and market volatility. Investment Advisors are able, through our services, to convey complex concepts in easy-to-understand content to clients, to effectively support them and alleviate their concerns.
According to our clients, our solution in the following areas is instrumental with client retention:
- Attribution Analytics
- Composite Analytics
- Risk (Ex-Post and Ex-Ante)
- Security Analytics (Fund-based)
- What-if Performance
The combination of the five areas above provides the simple and effective content that you need to support your clients, and we have the tools to support you. Let’s take a closer look at each of these and how they help you retain your clients.
- Attribution Analytics
Attribution Analytics focuses on the information to explain not only the performance of the portfolio, but the contributors/detractors to it and where you provided value. What makes Accio Analytics’ Attribution modules superior, is that the attribution models can be customized and are appropriate and relevant for the portfolio. This enables you to discuss in a meaningful and insightful manner your clients’ portfolio, which leads to a stronger relationship. While most clients only want to know how you’ll help them make the money back, Attribution Analytics provides the foundation for that conversation by explaining what the portfolio has experienced. If your history with the clients includes previous recessionary times, it will resonate even more strongly with them.
2. Composite Analytics
Composite Analytics focuses on the strategy that has been employed for your client and can provide a comparison on how the client portfolio compares to the overall strategy and the aggregate/average portfolio within that strategy. Having explained the Attribution Analytics to the client, you can now explain what general investor has experienced.
3. Risk (Ex-Post and Ex-Ante)
Risk Analytics focus on the volatility and exposures of your client portfolio. The combination of ex-Post and ex-Ante allows you to explain how the historical risk was and what the forward-looking risk is, where they differ, and where/if any adjustments are being made. This feature helps to explain what was expected and what to expect in the relevant time period, settling nerves when it comes to market volatility, rising interest rates and even inflation.
4. Security Analytics (Fund-based)
Security Analytics alone are great to show how the securities are expected to behave, but Fund-based security analytics add more perspective and context that is relevant to the client portfolio. Highlighting these in conversation will help expand that understanding for your client and will enable you to better articulate what their future holds, with respect to volatility, inflation, and rising interest rates and what that means for their portfolio.
5. What-if Performance
What-if performance is one that can be tricky if not explained correctly, which is why a lot of solutions don’t provide this feature. Accio Analytics’ What-if Performance enables you to focus on the historical average return and project that average return forward. It is NOT a promise or indication that historical performance means future performance. What it does is help explain that if a client stays the course in the long-term strategy, the historical average of past market corrections, and that it will weather the current and future storms as well. This message helps, alleviate concerns on possible recession, market volatility, inflation and even rising interest rates.
Summary
All these tools and more, are available in one solution for you to use. Typically, all these pieces are not available in one solution, if available at all. Accio Analytics allows you to create storyboard visualizations that can be used to help explain all of the above to your client. Our repositories of features and analytics will continue to grow and will continue to provide you more ways to not only better your experience with us, but your clients’ experience with you.
All of these analytics will build confidence in your client. It will convey to them that you are not taking anything for granted and are being thorough and diligent with their portfolio. It will also assure your clients that you have all the tools to manage their portfolio diligently and that they have made the right decision to be with you. Once your client sees and feels your efforts, concerns will diminish and you can focus on the management of the investments themselves, as well as the managing of your client relationship. Accio Analytics understands that focus and supports you with the tools you need to succeed in servicing and retaining your clients.
