The Elements

By Andrea Schlapia   |   May 14, 2012

Create Added Value In Your Investment Model

Categories: Blog, Investment Model

Designing a methodology for managing your client investments is essential for a clear representation of financial performance and aides in effective decision-making.  It is a generally accepted principle that a portfolio is designed according to the investor’s risk tolerance, time frame, and investment objectives.

Create Value Within Your Investment Model

“All good to great companies begin on the path to greatness

 by confronting the brutal facts of their current reality.”

Jim Collins, Good to Great

 Your goal is to create a weighted investment model (one or many) and implement a consistent investment strategy.  Focus on actions that will provide unique added value for your clients.  Position your firm to support the highest value-to-value exchange.

Evaluate your current investment model(s) with a focus on determining if they are creating added value.  Employing a one-to-many investment strategy creates the leverage necessary to optimize your resources and elevate your delivery of services to clients.

Consider the following services (not all inclusive) while evaluating your model(s) and how you will deliver added value for your clients with each service.

  • Risk Tolerance
  • Asset Allocation
  • Manager Research
  • Portfolio Monitoring
  • Rebalancing
  • Performance Reporting

While you are ultimately responsible for due diligence and oversight of your clients’ assets, you may want to consider outsourcing services that are invisible to your clients such as manager research, monitoring, portfolio construction, performance reporting and re-balancing to a third party who specializes in these services.  Other obvious outsourcing options or strategic alliances, such as CPAS, attorneys, and insurance agents will provide you the weight to focus on your firm’s unique added value and help clients with the steps they need to take.

Communication With Clients

Look at your value proposition through the eyes of your clients and prospects.  You must be able to answer the question, “Why should a client invest their money with you, versus allocating their funds in some other way?”

When implemented effectively, your investment model should be viewed by your clients as a proactive model with enhanced services and communication.  Implementation will require that you have direct systems and procedures in place to provide each service.

Advisors are required to make full and fair disclosures about fees.  Consider the appropriate fee level for your services and investment model.  You may want to implement a tiered fee structure that differentiates the service levels within your client segmentation process.

Your investment model(s) will allow you to sharpen your focus on the unique needs of each of your clients. Understanding that each of your clients has unique needs will ensure efficient client service delivery.

Ironstone can assist you in developing appropriate investment models and collaborate with you to develop solutions that are parallel to achieving the strategic goals of your firm.

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  Business Development-Client Appreciation


Andrea Schlapia
Organizational Development and Human Capital

Andrea Schlapia, RCC™, HCS, sHRBP, is the Founder and CEO of Ironstone, which represents the culmination of her 20+ year career within the financial services industry. Her experience began as a financial advisor evolving into a consultant coach for advisors entering the field. This ignited her passion to support others through learning and development of best practices in order to achieve substantial results. To this end, she followed her desire into positions of senior-level practice management specialists for Dreyfus, Prudential, and DWS Investments prior to the realization of Ironstone.  Andrea’s focus is on practice management strategies to enhance and improve both business and personal life.

Andrea identifies 4 key performance areas known as the Fundamental 4™, which are required to design, develop, and sustain a successful business. Through coaching sessions and speaking engagements, she captivates her audience with interactive, high-energy presentations which are built with “how-to” strategies resulting in real-world implementation for significant impact. Andrea has been featured in multiple publications and audio broadcasts as a specialist and distinguished spokeswoman in the financial industry.

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Contributors

Andrea Schlapia
Organizational Development and Human Capital
Connie Deianni
Mentoring and Employee Engagement
Guest Blogger
Practice Management
Dr. Heidi Maston
Organizational and Educational Leadership
Joe Kuhns
Strategic Partner
Judith Bowman
Business Protocol
Laura Garfield
Idea Decanter Co-Founder
Marsha Schechtman
Strategic Partner
Mighty 8th Media
Strategic Partner
Nicole Anglace
Special Projects
Ruthann P. Lacey, P.C.
Elder and Special Needs Law
 Scott D. Calhoun
Legal Counsel
Sharon Gottula
Idea Decanter Co-Founder
TailorMade
Strategic Partner
Ironstone
Practice Management
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