Smart Investment Advisors: Try To Become, Or Remain, "Alpha Advisors" - The Investor's Go-To Source For Advice, No Matter Where Assets Are Held

PHILADELPHIA, Sept. 10, 2014 /PRNewswire/ -- Smart investment advisors usually try to become the "alpha advisor" – the "main money person" that high-net-worth investors turn to for strategic advice no matter where their assets are held.

But it's never been more important, or more difficult, to attain or maintain alpha advisor status; investors are now more likely to scatter assets across multiple providers and to take advantage of "do-it-yourself" investment portals, according to a new commentary from InvestEdge, a leading provider of wealth management, data analysis and reporting solutions for the investment industry.

Advisors who want to rise to alpha status or protect it must ask the right questions and make sure they have robust technology in place to support an alpha level of client service. That's the guidance at the heart of "Being the 'Alpha' Advisor for Your Clients – A Brief Roadmap for Getting There and Staying There," published by InvestEdge.

"The alpha advisor stands out in an industry where providers are increasingly becoming commodities. When you are the alpha, you stand out with your clients, and that means that you can grow your relationships and protect them over the long term. That in turn leads to healthy margins and overall growth in your business," says Brian Burns, President and Chief Operating Officer of InvestEdge.

"The alpha advisor is truly independent – he or she is guided by what's best for the client, not by commercial considerations," Mr. Burns adds.

"Today, it is even harder to be the alpha advisor. Clients are less reliant on a single firm. At the same time, high-net-worth investors have become more demanding – because they're so thoroughly exposed to information technology, they expect highly customized reporting and analysis," he says.

The answer is to focus on the big picture. "Clients say they want data. But what they really want is answers. What will set the best advisors apart is not the ability to aggregate large amounts of data but rather the ability to get at clients' pain points – their fear and confusion – and point them in the right direction," he says.

WHAT ADVISORS SHOULD ASK THEMSELVES

To find out if they're ready to give clients the big picture, Burns says, advisors should ask themselves:

• Are we able to provide comprehensive data and analysis? Do we have access to all the client's information, including assets at other firms, and can we provide holistic advice based on their goals and appetite for risk?
• Is our advice far-reaching? Are we helping clients understand what questions they should be asking and why?
• Do our clients rely on us for all their investment advice, beyond the assets they keep with us?
• What is the quality of our information technology platform and our client portal? Do they give us and the client centralized access to all accounts? Do they allow us to generate custom reports for individual clients, easily and on demand, without taking us away from other clients?

QUESTIONS FIRM LEADERSHIP SHOULD ADDRESS

Firm leadership should consider alpha advisor status in terms of the health of the business:

• Are we doing enough to address our clients' needs? What more should we be doing? What more should we be doing?
• What does it cost us to serve each client, for example by providing custom reports?
• Are we spending enough time with our most valuable clients?
• Are we getting enough of each clients' business?
• Is our client interface elegant? Is it easy and pleasant for clients to work with?

Firms and advisors that want alpha status can achieve it by supporting their strategic insights with the right technology. Mr. Burns says, "What's needed is a technology solution that pulls together the full investment picture for both the advisor and the client, and allows the advisor to provide reporting and analysis that is strategic, comprehensive – and also fast and easy to produce."

WHEN AN ADVISOR IS THE ALPHA, IT'S A WIN-WIN ALL AROUND

The good news is that the right technology support will help make the firm not only valuable to clients but more competitive and more profitable as well, Mr. Burns explains:

• The same technology that supports reporting and analysis allows the firm to create branded portals, which help extend the brand.
• Technology that generates fast custom reports allows advisors to spend more time doing what they do best – serving clients and creating new relationships.
• When the analytic tools are standard, the firm can standardize quality across multiple providers and offices, and easily train new advisors – all of which leads to new growth.

"With the right technology support, becoming an alpha is a win for the client, the advisor and the firm," Mr. Burns says.

About InvestEdge, Inc. 
InvestEdge is a leading provider of innovative advisor solutions to large banks, HNW advisors, and brokerage firms. Through an integrated wealth management platform, InvestEdge automates key front-office functions including portfolio management, performance measurement, client reporting, compliance monitoring, and trade automation. Launched in June of 2000, InvestEdge has grown quickly through the delivery of their Software-as-a-Service to major banks, trust companies, brokerage firms and registered investment advisors.

To learn more, visit http://www.investedge.com or call 1-800-830-1839. InvestEdge is a registered trademark of InvestEdge, Inc.

SOURCE InvestEdge, Inc.