Streamline client portfolios

A streamlined approach to managing client portfolios can help you grow your practice and help your clients invest with confidence.

Our four-step process can help

Through our analysis of thousands of portfolios, we discovered that the processes of the best advisors have four distinct steps:

Mechanical tool kit
Benchmark

Benchmark

Setting a benchmark is complicated since benchmarks serve multiple purposes. First, a benchmark aligns a client’s objectives and risk tolerance to their portfolio. Second, it helps clients understand how their portfolio performs over time. And third, a benchmark is the basis for asset allocation, representing the “home” position of the portfolio.

Doughnut pieces mimicking a chart
Budget

Budget

A portfolio without risk won’t generate real returns. But all risk is not equal. You must balance taking risks aligned to good return opportunities with a client’s objectives and risk tolerance. Creating a risk and cost budget can help you determine how best to deviate the portfolio from the benchmark to achieve the client’s objectives.

Checkers on a game board
Invest

Invest

Two key things to consider when investing: vehicles and managers. ETFs can help translate a risk budget into a portfolio. Actively-managed mutual funds can be candidates for seeking alpha. SMAs can provide greater customization and tax management. Alternatives can tap into hard-to-access segments of the market.

Communication satellite in a field at dusk
Monitor

Monitor

Check in on the portfolio’s progress and your clients’ goals regularly. Life happens and goals can change, impacting how best to allocate the client’s portfolio. Regular check ins help ensure that the portfolio remains on track to meet their goals. A scalable monitoring process can help you and your clients stay on track.

Worksheets to help you manage your process

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Don’t want to own the whole process?

Consider BlackRock model portfolios to help you Budget, Invest and get a head start on Monitoring. BlackRock model portfolios can help you:

  • Scale and simplify your business
  • Implement a defined investment process
  • Spend more time with clients
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92%
of model and SMA users said that outsourcing improved their practice during COVID volatility
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BlackRock. In response to the COVID-19 induced volatility, during the week of 5/4/2020, BlackRock collected responses to a 15 question survey about wealth outsourcing (SMA & Models usage) experience and intentions from approximately 305 financial advisors across more than 10 independent and wire channel firms. The results above are a snapshot of the data collected as of 5/11/2020.