Tailored Portfolio Solutions

Powering Portfolio Customization at Scale
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Charles 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

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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
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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
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Efficient

  • Simplifies the operational complexities that were once a barrier to customization at scale
  • Optimization technology is the engine that powers Tailored Portfolio Solutions

Charles 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

Checklist Icon

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 Icon

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 Gears Icon

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.

Screenshots for informative purposes only; no live data being used.

Portfolio Optimization

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:

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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.

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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.

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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.

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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

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.

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