Advisor Perspectives Article

Katie Godbout, Director of Sales & Marketing
March 9, 2017
    

New tools to prove you acted as a fiduciary

Bob Veres recently conducted a review of SmartRisk Pro, one of the risk tools Covisum recently acquired through PrairieSmarts.

Here's an excerpt:

With Smart Risk, you can import a client’s portfolio holdings from Orion, Redtail or a spreadsheet, and the software will calculate your “downside expectation” – that is, the maximum potential loss in the portfolio – over a day, a week, a month or a year. “The idea is that the advisor would show the client how much the portfolio might be down, in dollar terms, over a single month,” says company co-founder Ron Piccinini.

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The output also gives an “asset interaction” score that defines how diversified the portfolio is – or, in some cases, is not. “Some investors will select a lot of different funds in their 401(k),” Piccinini explains, “and they think they’re diversified. But when you look under the hood, you see that they’ve bought a lot of different versions of the same investment.”

Finally, there’s an evaluation similar to the traditional beta measure, which shows how the portfolio might react if the S&P 500 were to drop 10%, 20% or 30%. The software allows users to perform this evaluation on a dozen different indices, basically stress-testing the portfolio against different types of bear market.

Check out the full article here.

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Posted by Katie Godbout, Director of Sales & Marketing
Katie thrives on making an impact and achieving big goals. She believes that communication strategy has a major impact on business success. As a strategic communicator with a diverse background in non-profit, B2B, healthcare, and SaaS, Katie combines her expertise in strategy development, marketing and sales to spread the word about how Covisum can help advisors and institutions inform their clients of the best financial decisions.