Charles River Tailored Portfolio Solutions
The demand for customized portfolios in wealth management is accelerating. Investors increasingly expect managers to tailor portfolios according to their personal circumstances and beliefs. For wealth managers and advisors, offering customized portfolios is becoming an important differentiator. Historically, managers have struggled to offer this capability due to cost, operational challenges, or technology constraints. Recent trends such as the evolution to low or zero trading fees and newer technology capabilities that facilitate customization at scale have enabled firms to offer personalized portfolios more broadly.
Powered by Qontigo’s industry leading Axioma Portfolio Optimizer engine, Charles River’s Tailored Portfolio Solutions platform enables wealth and asset management firms to offer high-value portfolio customization at scale. Firms can manage the construction and trading of in-house models, third party separately managed account (SMA) strategies, or operate Direct Index programs tailored to the requirements of each individual investor.
Powering Portfolio Customization at Scale
Personalized
- Deliver highly customized portfolios for the mass affluent market
- Designed to mitigate tax burdens, reflect ESG convictions, replicate an index, and integrate household accounts
- Provides a value-added offering that can help improve outcomes for clients
Scalable
- Scalable technology allows portfolio customization for large numbers of accounts
- Built as part of Charles River’s Wealth Management Solution, with the configurable and scalable platform to support business growth
Efficient
- Simplifies the operational complexities that were once a barrier to customization at scale
- Optimization technology is the engine that powers Tailored Portfolio Solutions
Brochures and Data SheetsCharles River Tailored Portfolio Solutions
The demand for customized portfolios in wealth management is growing. Investors want their portfolios to reflect their beliefs and personal convictions and take their specific tax and risk profile into consideration. For wealth managers and advisors, offering customized portfolios is becoming an increasingly important differentiator.
Charles River’s Tailored Portfolio Solutions enables wealth and asset management firms to offer high-value portfolio customization at scale. Firms can manage the construction and trading of in-house models, third party separately managed account (SMA) strategies, or operate direct index programs tailored to the requirements of each individual investor.
Powering Portfolio Customization at Scale
Personalized
- Deliver highly customized portfolios for the mass affluent market
- Designed to mitigate tax burdens, reflect ESG convictions, replicate an index, and integrate household accounts
- Provides a value-added offering that can help improve outcomes for clients
Scalable
- Scalable technology allows portfolio customization for large numbers of accounts
- Built as part of Charles River’s Wealth Management Solution, with the configurable and scalable platform to support business growth
Efficient
- Simplifies the operational complexities that were once a barrier to customization at scale
- Optimization technology is the engine that powers Tailored Portfolio Solutions
Portfolio Optimization
Optimization technology acts as the engine for Tailored Portfolio Solutions (TPS), allowing clients to build portfolios according to stated objectives and constraints. Employing portfolio optimization provides wealth managers with fit-for-purpose analytics across portfolios and their corresponding benchmarks. The process begins with the capture of data containing objectives and specific constraints for customization. Charles River then leverages its optimization technology to build scale and efficiency into the portfolio implementation process either on a real-time basis or as a batch process.
Tailored Portfolio Solutions Capabilities
Charles River’s Tailored Portfolio Solutions enables wealth managers to efficiently deliver highly customized portfolios at scale. Wealth firms can apply client-directed or manager-initiated constraints to a performance benchmark to replicate that index’s performance and risk attributes within the client’s portfolio. TPS enables managers to tailor portfolios through:
Tax Optimization
Managers can minimize the tax burden on portfolios by coordinating tax events across accounts, incorporating held away assets, and factoring in clients’ tax rates and objectives. The solution also helps improve after-tax returns by allowing managers to make optimal tax/risk trade-offs in rebalancing.
ESG Customization
TPS allows for an investor’s environmental- and social-based values to be reflected in the portfolios by capturing and implementing their preferences while still adhering to the benchmark or tracking model. Negative screening can help ensure compliance with ESG criteria.
Direct Index
The risk/return profile of an index can be replicated while adhering to operational constraints such as minimum trade sizes or client requirements like tracking error and position limits. This capability supports custom benchmarks, concentrated positions, and the transition management requirements typically involved with the implementation of complex investment objectives.
Household IPS Implementation
Tailored Portfolio Solutions automates integrated portfolio management and decision making across a household of accounts, avoiding wash sales and managing tax and risk outcomes.
Wealth Insights
Navigating the Complexities of Delivering and Distributing Models
Asset flows into model portfolios have been rising and it is expected that this trend will continue, presenting a growth opportunity for asset managers. Steve Camp at State Street, and Mark Spinaat FLX Networks, discuss best practices for managers who wish to enter this space, the implications of possible regulation, and what the future may hold.
Watch the full length interview on Delivering and Distributing Models.
Learn more about Charles River's Wealth Management Solution.
ESG for Wealth Management: A Paradigm Shift
The implementation of ESG is undergoing a paradigm shift across the industry. In this MMI Advisory Insights interview, Charles River’s Randy Bullard and Josh Levin from OpenInvest discuss these fundamental changes and how they present new opportunities for firms and individual investors.
Watch the Full Length Interview on ESG for Wealth Management.
Read our Custom Portfolios Insight The Evolution of ESG.
The Evolution of Direct Indexing
In this MMI Advisory Insights interview, Craig Pfeiffer, CEO of MMI, and Randy Bullard, Global Head of Wealth for Charles River Development, discuss the industry trends and innovations in technology that have enabled the recent surge in interest around direct indexing.
Learn more about Direct Indexing through Tailored Portfolio Solutions.
Read our Direct Indexing Insight 2020’s Surge is Just the Beginning.