benchmarks, CRM2, Financial Advisors, investments, Software, Understanding Investments

New regulation is here and one software provider believes it can help you restore client confidence:

The Financial Industry has just gone through its first RRSP season with the new performance reporting requirements.  There have been more questions, more confusion and more time demands on the financial professionals.  There have been challenges, but successes as well.

Top CFP’s have had varied responses but a few positive words have been spoken.   Said one CFP:  “The onus is now on us to step up.   If you can provide your clients with a clear picture of their financial situation you are well on the road to having a good relationship for the duration.   Your clients need to know just 3 things:    1.Financially, where are they now, 2. how did they get here, and 3. where are they going to be?   If you can answer these 3 questions, why the heck aren’t you on a yacht in the Bahamas?“

On a more serious note, if you could explain those three aspects, you would be restoring client confidence that may have been shaken with the incongruous reports from the corporate financial system.

  1. Where are they now?

Show your client graphically, what they are investing in.   It is then easier to guide them in making informed decisions.

  1. How did they get here?

What are the consequences of their decisions?   Over the course of the years, you have advised your client and they have made decisions in consultation with you.   Show them graphically, what would have happened if those decisions had been different.   For example, what would have happened if they had gotten out of the market in 2009.

  1. Where are they going? Will it be salmon or cat food in the tin?

Where will they be in 10 years?  20 years?   Illustrate graphically, various scenarios and the effects of their investment decisions.   This is completely speculative, but most clients welcome the opportunity to visualize a variety of outcomes.   The simple exercise of varying retirement age or adding 10% to savings per year, and graphing these numbers so that the client can see pictorially, the effect of their actions, will propel good things.

Obviously, none of the above questions can be answered definitively.   But illustrating the speculations above with graphs and pictorials will help the client internalize good strategies.    This will go a long way in entrenching client confidence in your value as a professional.

How do you compete with new low cost alternatives and the new advisors coming into the industry?  By providing your clients with superior professional financial guidance.

financial software for planners and advisors

 

 

Advertisements
Standard
investment analysis, Retirement Saving, RRSP

The Value of Financial Advice

by guest blogger Jan Hanson

As a client, you may be wondering what you’re gaining from your Financial Advisor’s advice or whether or not the value they bring to the table is worth paying for.

The average investor doesn’t have the time or the interest to sit down and analyze pages of financial jargon, or the dedication to attempt to dissect their financial statements. While having an advisor can be lucrative in generating higher returns, it also provides access to the opinion of an educated individual and all of their resources.

value-of-advice
If your statements are so muddled you don’t even know where to start, it may bring you peace of mind to know that studies have proven that advised households have approximately twice the level of financial assets as their non-advised counterparts.

Meaning while paying fees for a professional’s guidance may not prove to be immediately beneficial, in the long term, it has proven to generate double the amount you would have made without the advice.

#crm2plus.com

Standard
Annual Performance Reporting, benchmarks, CRM2, Software

How can prepping client meetings be made more efficient?

Preparing for client meetings is time consuming.   Generating the graphs, creating pictorials and tangibles so that your high net worth clients can appreciate their performance….

Using a software tool such as CRM2plus can save hours of prep time and give you that opportunity to demonstrate to your clients, why trusting you with their investments is a good idea.

CRM2plus satisfies and goes several steps beyond recent CRM2 regulations regarding performance, allowing the advisor to demonstrate their value to their high net worth clients.

The key competitive advantages of CRM2plus software are;

  • Clients see graphically what was invested and when, against portfolio market value over time.
  • Performance of the complete portfolio can be shown on one graph. The advisor can analyze various assets and aggregate them for a complete financial picture, including external assets such as real estate investments.
  • The advisor can group clients. This is relevant when analyzing a family’s pooled assets such as husband and wife’s RRSP’s, TFSA’s, a family trust, and a business.
  • Benchmarking: Using data from major stock market indices including S&P and NASDAQ , the software can create a transactionally consistent comparison portfolio for benchmarking. Indices can be weighted, to demonstrate the effects of market movements on a client portfolio.

 

TANGIBLE BENEFIT CRM2plus
Graphical Presentation – results are graphical for clarity.  Graphs of fair market value and returns over different time frames such as Quarterly, Annual, 5 yr or custom dates are available.
Client Focused Portfolio Aggregation -reports from the investor’s point of view.  Reports on performance across products and investments, including assets such as personal real estate holdings, showing a total financial picture.
Merging Accounts -reporting on any level of aggregation from individual accounts to family wealth management:  RESP’s, RRSP’s, TFSA’s, personal investments, business investments, family trust.
Benchmark Comparisons -create a transactionally consistent comparison to a blended benchmark portfolio including several different indices (e.g. 40% TSX, 20% DEX Universe Bond Index, 20% Euro Stoxx 50, 20% Gold)
Rebalancing -dynamic rebalancing to reflect the client’s portfolio mix
Testing Hypotheses -allows the Financial Advisor to demonstrate the value of their advice:   A copy of the client portfolio can be tested against various hypotheses:  “What would have happened if the client had not taken the advice and had sold late 2008?” Simulations against legitimate benchmarks can include timings of transfers and rebalancing.
Import External Data – Digital data can be imported.  To minimize the data entry burden, CRM2plus will read pdf’s.
Design Focus CRM2plus is a grass roots product; built from the bottom up, designed by Financial Advisors to help them better service their high net worth clients.

 

 

 

Standard
Annual Performance Reporting, benchmarks, CRM2, CRM2Plus Software, Financial Advisors, investment analysis

Tired of the using Excel to Prepare for Client Meetings?

Are you a portfolio manager and finding it challenging to create the required CRM2 reports from your legacy system?      Are you tired of using Excel to massage data?

There are tools available that allow you to show clients graphically, their portfolio performance.   There are tools that require much less of your time and provide better results.

One such software tool, CRM2plus, satisfies and goes several steps beyond recent CRM2 regulations regarding performance, allowing you to demonstrate the value of your advice.

The key competitive advantages of CRM2plus software are;

  • CRM2plus reads client’s statements and generates XIRR reports in graphical format.  Clients see graphically what was invested and when, against portfolio market value over time. XIRR and volatility are metric that are provided.
  • Performance of the complete portfolio, or any investment, can be shown on one graph. You can analyze various assets and aggregate them for a complete financial picture, including external assets such as real estate investments.
  • Merging accounts is another feature. This is relevant when analyzing a family’s pooled assets such as husband and wife’s RRSP’s, TFSA’s, a family trust, and a business.
  • Benchmarking: Using data from major stock market indices including S&P and NASDAQ , the software can create a transactionally consistent comparison portfolio for benchmarking. Indices can be weighted, to demonstrate the effects of market movements on a client portfolio.
  • Counterfactual portfolio’s or What if’s: Portfolio’s can be replicated and various “what if?” scenarios graphed against actuals to demonstrate to the client what would have happened if other decisions had been made.

Why is CRM2plus software important for you?  Success comes from a competitive advantage and CRM2plus software gives you that advantage.

graph-of-market-value-and-invested

graphical results of investment performance with CRM2plus.com

Standard