Jody Cullinan, director of product management and strategy, Investment Services at Fiserv, discusses how home offices are employing wealth management technology to monitor the performance of advisors.
A recent survey of investors as reported by FundFire shows that they are becoming more skeptical of individual financial advisors and more likely to value the skills of a dedicated team of investment professionals. This comes as advisor discretionary rep-as-portfolio manager (RPM) programs have become one of the fastest growing advisory programs in recent years, outpacing home-office discretionary and third-party separately managed accounts (SMAs).
Home offices may want their advisors to focus more on holistic advice and less on managing individual portfolios, yet most have steered clear of pushing their existing advisors to give up RPM. Instead of forcing out poor-performing advisors who see themselves as portfolio managers, home offices are putting tools in place for advisors to compare themselves against their peers and make the decision on their own to transition out of being the portfolio manager. Cullinan speaks with FundFire about this and the monitoring and surveillance home offices are performing as they look to enact enterprise-wide warnings around not only position concentration, but sector concentration and allocation drift that might go beyond a client's specified risk tolerance.Download