AssetMark Inc., a provider of investment and consulting solutions for financial advisors, has launched “Investing Evolved,” a portfolio construction framework designed to help advisors build portfolios, AssetMark announced recently.
The new tool was created in part to facilitate discussions between advisors and investors on how portfolios will perform across a range of market conditions. The discussions are core to the advisor-investor relationship because they help keep the investor in the market during times of stress, says AssetMark.
“The traditional approach to portfolio construction is no longer adequate because it assumes that investors are always rational and that markets are always efficient,” says Jerry Chafkin, chief investment officer for AssetMark. “Advisors need to construct portfolios that incorporate elements of both behavioral finance and modern portfolio theory so that their recommendations better align with their clients’ preferences and actual experience.”
Part of Investing Evolved is PortfolioEngine, a portfolio construction tool designed for advisors to use both when constructing portfolios and when helping clients visualize what their portfolio could do in different market environments.
For advisors who prefer to outsource their portfolio management, AssetMark upgraded its Guided Portfolio Solutions to include a range of pre-constructed, actively managed model portfolios that can respond to changing markets, the firm says.
“Financial advisors need more powerful tools that make it easy to build portfolios that keep investors on track to help them meet their financial goals,” says Charles Goldman, president and CEO of AssetMark. “Through our Investing Evolved solutions, advisors are better able to construct, compare and test portfolio strategies, as well as communicate those strategies to their clients in a more meaningful way than traditional portfolio construction approaches.”