Just what the doctor ordered-Web sites that
are easy to use.
Alot of information is floating around the
Internet these days. So much so, in fact, that it is often
difficult to discern what information is valid or even useful to
financial advisors. Those advisors who are associated with
broker-dealers know that their b/ds usually provide a laundry list of
information resources that may have been customized to fit the needs or
compliance concerns of the b/d. Advisors frequently turn to outside
(independent) resources to find objective research data. The problem is
finding sources that are reliable, accurate and affordable.
Market research data is one area in which there are
a multitude of choices, but few that are truly useful to the financial
advisor. Retail sites, such as CBS Marketwatch, Hoover's, Yahoo
Finance, MSN Money Central's Market data (provided by Briefing.com) and
Quotes.com (provided by eSignal) contain information of interest to the
average investor, but are so general and/or sanitized as to be largely
useless to sophisticated financial advisors.
Instead, advisors have turned to more intuitive
research sites that provide in-depth coverage of stock market issues,
company-specific information and other data that can be directly
applied to a professional investment management firm. With apologies to
those many sites that are not mentioned, what follows are three
examples of subscription data service Web sites.
Morningstaradvisor.com
www.morningstaradvisor.com
The advisor edition of Morningstar's heralded Web
site contains a wealth of information and tools to help advisors find
investment research data and make intelligent choices for their
clients. The site contains features such as:
Practice Builder - Tips and techniques on expanding your practice.
Investment Insight - An inside look at mutual funds and stocks, compiled by Morningstar's team of analysts.
Fund Times - Mutual fund news items including new offerings, fund closings and manager changes.
College Savings Educator - This focuses on college savings issues and 529 plans.
In addition, a relatively new section is called
Retiring with Natalie Choate, which is a Q &A on retirement issues
with the retirement planning expert and author.
Morningstar also hosts a series of Web seminars on
various topics from this site that can be replayed later. Another
interesting feature is the ability to subscribe to MorningstarAdvisor's
RSS (Really Simple Syndication) feed to receive articles delivered
directly to your desktop. RSS is an XML-based format for sharing and
distributing Web content, such as news headlines. Using an RSS reader,
you can view data feeds from various news sources, such as
MorningstarAdvisor.com, including headlines, summaries, and links to
full stories. RSS readers are available free in most instances. Yahoo's
My Yahoo page accepts RSS feeds, for example. By customizing your RSS
reader (Aggregator), you can design a page that provides only the
information you need that is relevant to your practice. Newsgator
(www.newsgator.com), RssReader (www.rssreader.com) and Google Reader
(www.google.reader) are all examples of free RSS aggregators.
Standard & Poor's Advisor Insight
www.sp.advisorinsight.com
Currently undergoing a complete revamping, Standard
& Poor's Advisor Insight offers a new version that includes:
MarketScope, a real-time news and market analysis
service that includes portfolio strategies, current opinions and stock
ideas. It also brings you updates on buy/hold/sell stars, S&P's
latest buy, sell or hold recommendations on more than 1,500
qualitatively ranked stocks. Included in MarketScope is:
Research Notes, analyst updates plus news on recommendations and much more.
Market Indicators, S&P analyst Paul Cherney offers his unique insights on the equity markets.
Broker News and Views, comments and views from Wall Street's top analysts on active and volatile issues.
S&P Outlook, which includes summaries of
overnight activity in Asia and Europe along with potentially
market-moving events.
Ideas: Stocks & Portfolios, offers advisors
action-oriented investment ideas and strategies to serve different
client needs. It includes access to nine different portfolio strategies.
Stock Reports, in-depth analysis of publicly
traded companies including performance, analyst opinions and
fundamentals.
Fund Advisor, mutual fund news and analysis that includes hypothetical illustrations.
SMA Evaluator, a comprehensive new service that
offers research, analysis and tracking of separately managed accounts.
Variable Annuities, which includes hypotheticals, VA policy reports and subaccount reports.
Sector and Industry Research, analysis of U.S.
industries and sectors that is designed to uncover potential future
trends, etc.
Indices, a compilation of all of S&P's best known and most reliable indexes.
Sales Tools, includes financial calculators, a
library of newsletters, sales aids, prospecting letters and special
reports you can use to help you communicate with your clients.
Alerts, S&P's new alerts services generates
e-mail alerts on S&P intraday market commentary, STARS ranking
changes, S&P Portfolio changes and much more.
Fixed Income, with corporate bond reports that
include ratings, ratings histories, credit watch activity along with
profiles, financial highlights and more.
Options Strategies, offering turnkey options
strategies for financial advisors to use with their clients. It
includes options investment ideas based on daily S&P equity
research notes that are updated constantly, options portfolios that
step the financial advisor through a series of trades every month based
on extensive research, and options strategies developed by S&P
experts. There are also covered call portfolios and hedged investments
based on dividend-paying stocks.
Standard & Poor's Vice President of Product
Development Peter Fiore says that future enhancements to Advisor
Insight, due by January 2007, will include a more intuitive interface,
easier navigation and more interactive features. "The intent is to
rationalize our content and make it more actionable by both the advisor
and the client." This is hard to imagine, given the wealth of content
already available on this site.
Sageworks
www.sageworksinc.com
This site focuses on providing financial advisors
who work with business owners simple-to-understand narrative from
complex business research data. Founded on the
principle that financial research data should not be difficult to
understand, Sageworks seeks to provide financial professionals with a
platform that analyzes investment, company and other data and distills
that data into readable form. According to Brian Hamilton, founder and
CEO of Sageworks, "Our goal is to reduce financial statements and data
down to their core. The end-point we want to achieve is to help people
understand their financial information and make better decisions with
that data."
Sageworks has developed a software solution called
ProfitCents that is designed to take the dizzying array of financial
spreadsheets, charts and graphs and convert that data to understandable
narrative. The ProfitCents reports provide advisors with a unique and
powerful tool to assist their business owner clients.
These three examples are representative of literally
hundreds of such sites. The advantage of working with well-known,
highly regarded services is in the name recognition by clients and by
the reliability experienced by advisors. Efficiency is achieved when
financial advisors do not have to spend an entire day trying to find
information relevant to their clients' needs.
David Lawrence, AIF, is a practice
efficiency consultant and is president of David Lawrence and
Associates, a practice consulting firm based in Lutz, Fla.
(www.efficientpractice.com) David Lawrence and Associates is an
approved sponsor of CFP Board of Standards continuing education credits
and offers CE programs on a variety of topics, including the financial
planning process.