Whitepaper: 4 trends driving demand for personalized portfolios and financial advice

Confident female professional discussing in board room. Group of business colleagues planning together in meeting.

Personalization. Customized advice. Tailor-made portfolios. In today’s heightened fiduciary environment, these are more than just buzzwords. They mean something to wealth management clients. Over the past several years, personalization has become the norm in most consumer-facing industries. Amazon and Netflix have significantly raised expectations about what highly personalized service means.

Today’s clients increasingly expect their advisors to have an intuitive understanding of their financial and personal situations and increasingly want advice customized to their preferences and goals. They have unique investment preferences, beliefs, life goals, and risk profiles. With hyper-personalization, portfolios can be individually tailored to these specific requirements.

In times of volatility and uncertainty, there tends to be increased demand for total portfolio offerings such as model portfolios and outsourced CIO-like services.¹

In addition, new demands of portfolio construction—including integrating illiquid private-markets strategies at a significant scale and incorporating environmental, social, and governance (ESG) criteria—have created new areas of client need.¹

To compete and grow, advisors must demonstrate the ability to deliver levels of customization that fully address each client’s unique financial circumstances and personal preferences. With many concerned clients demanding more attention, personalized touch points and fast, thorough responses to questions and preference adjustments can make all the difference. Technologies that allow portfolio customization at scale will extend the ability of asset managers to offer advanced portfolio solutions to smaller clients, including retail investors.¹

Here, we look at what’s driving the growing demand for portfolio personalization and how advanced rebalancing technology can help.

Read the whitepaper

Source: [1] The Great Reset: North American asset management in 2022, McKinsey & Company, Oct. 28, 2022.