The retail financial services industry is experiencing a shift from a product-centric model to a more client-centric, says Anton Honikman, CEO of MyVest, a Silicon Valley provider of enterprise wealth management technology. At the same time wealth managers are under increasing margin pressure.
These factors present a challenge when it comes to giving clients the personalized service they need. “Historically, a high level of customization is typically reserved for only the very wealthy and has required a team of specialists to handcraft a solution for them,” says Honikman. “Our technology helps advisors bring more personalized services to a broader audience without compromising margins.”
In the spring of 2018, MyVest launched its Portfolio Management Suite, software that gives advisors access to a suite of integrated model management and rebalancing & trading tools that can be integrated with their existing proposal, onboarding, reporting, billing and investor portal systems. The product is a modular subset of the firm’s Strategic Portfolio System, a holistic wealth management platform for medium to large enterprises.
The Portfolio Management Suite allows advisors to tailor solutions that reflect each client’s personal circumstances such as taxes, liquidity, risk, and their values. “The system takes these personal inputs and then rebalances every portfolio every single day to stay in line with the investor’s preferences,” says Honikman.
Tax optimization is a specialty: “The system extracts tax alpha in an optimal way, which over time gives investors better returns,” he says. The software also includes a built-in trade order management system with the capacity to organize trade orders across a large number of portfolios.”
“Our system allows advisory organizations to provide personalized portfolios to their customers at scale,” Honikman, says. “A holistic, tax-aware, personalized portfolio is what firms need to support client-centric wealth management.”