With the recent market volatility, many of our advisors have been using our allocation change tool to move their clients into more tactical portfolios on our platform for additional protection.
RIA’s are using our simple to use TAMP to create operating efficiencies, increase their time spent managing client relationships and prospecting, as well as to enhance the suite of investment solutions available to their clients.
The ability to move seamlessly in and out of allocations or sleeves in a unified managed account further emphasizes to clients that their fiduciary advisors truly do sit on the same side of the table of their clients.
Our entire industry is placing “fiduciary first,” and thus advisors would be wise to strengthen this stance with their client while placing a barrier between themselves and returns. No longer is the advisor sitting on the opposite side of the table to the client, but the advisor and client are sitting on the other side of the table to the money manager. That table is now the TAMP.
Educating a client on the ability to move in and out of models and sleeves as financial goals or market conditions change, will be key in maintaining client relationships for advisors. The argument is no longer, “I don’t like your strategy, Mr. Advisor,” but, “Mr. Advisor, I don’t like this strategy, what else do we have available that better suits my goals?”
Advisors who leverage technology to their client’s advantage will become irreplaceable. With decreased volatility and tactical, dynamic and strategic options, the relationship is the advisor’s to lose.
Whether the advisor believes it is best to ride out a rocky period with the lower volatility of an institutional buy and hold strategy or take advantage of tactical is another question – but what is certain (and underappreciated) is the ability for TAMPs to protect clients from volatility.
Using a TAMP shouldn’t just be about helping the advisor grow, but if you protect your client, you’ll protect your business. The operating efficiencies should just be an added positive.
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