5. Relationship-Building Assistance
New as well as experienced advisors may need help from their program sponsor to meet with clients and prospects. Some clients take comfort in meeting with the people behind the program. Make sure your managed account provider has a highly experienced sales team and investment professionals who understand the needs of high-net-worth clients.
6. Dedicated Client-Service Teams
Firms that offer financial advisors a dedicated client-service team are able to provide greater assistance in new business development, client transitions and ongoing client servicing. Teams should include the program sponsor's investment consultants to oversee the relationship, investment strategists to assist in the development of investment recommendations, portfolio administrators to handle account transfers, and day-to-day client service personnel. Client service teams allow for more sensitivity and connection to the needs of advisors and their clients.
7. Efficient Data Management Technology
It's no secret that the managed account industry has significant operational challenges. The data flow among industry participants is not automated as it is in the mutual fund industry. There are few standardized processes or protocols, and data relating to separately managed accounts often flows through phones, faxes, e-mails, manual uploads and downloads and automated interfaces. This reality has caused committed program sponsors to focus on replacing these inefficiencies with new technologies. When evaluating programs, consider what systems the firm has to handle the ongoing and voluminous data flow.
8. Administration And Training
The process of starting accounts and their ongoing administration are a real challenge. Advisors have to deal with delays in opening and trading accounts. Today, new technologies automate the set-up of new accounts and the ongoing trading of accounts to avoid human error and processing delays. The time required to set up and initially trade a managed account has gone from one to two days to 15 to 20 minutes-when the right technology is in place. Make sure your provider has the systems to provide one account number for multiple managers, to efficiently trade accounts, to maintain account restrictions and to transfer low-cost basis stocks.
9. Wealth Management Platforms
Wealth management platforms offer a variety of tools. For example, financial planning tools help advisors assess the client's current financial status while incorporating the client's goals and needs. Account aggregation tools allow advisors and clients see their total financial picture by bringing in account information from multiple custodians, investment managers, banks and even credit cards. Customer relationship management tools help maintain detailed data on clients and can even provide alerts to advisors when a client's asset allocation or cash position needs review. And, it is important that advisors are able to access a client's database of legal and financial planning documents.