How to Meet the Needs of the Modern Investor in Volatile Markets
All Financial Advisors know that investment involves risk to achieve returns.
Every investment market experiences peaks and troughs. However, these continual ups and downs can force clients and Financial Advisors to focus more on reacting constantly to this volatility while losing sight of the client’s actual investment goals.
The Inevitable Market Fluctuations
According to a recent study, What past market declines can teach us by The Capital Group Companies Inc, declines of around 10% occur about once a year and declines of around 15% occur once every four years (based on historical data).
Unfortunately, no one can consistently predict market declines and how long they will last.
However, Investors still want to achieve a strong return and they look to Financial Advisors and Financial Firms to help them invest successfully.
While markets are volatile, your asset allocation strategy doesn’t have to be.
Modern investors need dynamic asset allocation portfolios from firms that will manage the volatility and risk by basing the strategy on goal-based investing.
How to Manage Investment Portfolios through Volatility
A static, ‘one size fits all’ model doesn’t provide the best results for clients. Especially as every client has multiple goals with different time horizons for each goal.
A better and more effective approach is leveraging post-modern portfolio theory (pmpt) and dynamic asset allocation models that can be personalized to each client based on achieving their specific goals; smoothing out their investment journey over the long-term.
This diversification through tactical asset allocation helps Financial Advisors focus on the actual client needs, rather than an outdated and static risk profile. By offering this tailored approach to each client, you can provide a better client-centric financial strategy based on your clients’ financial objectives, while meeting your firm’s risk and profitability goals.
However, this requires a lot of time, knowledge and resources to customize each investment strategy.
ERO Helps You Offer Quick and Dynamic Asset Allocation
The ERO technology intelligently incorporates academic breakthroughs by top financial experts, economists and researchers — including Nobel Prize winners William F. Sharpe and Daniel Kahneman — with today’s most advanced scientific models to identify mutual funds, ETF’s and investment managers who have the highest probability of achieving both client and firm goals.
This eliminates manager selection guesswork, it works with any family of funds or investment selection and increases the probability of success by tailoring each portfolio to the investor’s specific goals.
ERO does all of this for you in minutes, saving you time.
ERO also enables financial firms to develop asset allocation strategies that will help meet or even exceed the return needed by clients to achieve their financial and lifestyle goals.
How ERO Positions You for Success
Watch this video to learn more about how ERO works and how it can help Financial Advisors and Financial Firms meet the needs of today’s modern investor.
Want to learn more about ERO? Contact us directly or call us (949) 481 5051.
)
)
)
)