At Numetrix, one of our primary objectives is to help advisors grow their practices. In short, we strive to help advisors:
- Attract and keep clients for life
- Be more efficient in their practices
- Select, monitor, and adjust portfolios strategies
- Set client expectations
- Stay current with the markets
- Build better portfolios
Keep Clients for Life
Numetrix strives to help advisors first attract and then keep clients – for life.
Too many advisors spend the majority of their time searching for and attracting new clients. However, an overlooked key to a successful advisory practice is keeping clients happy.
There is little doubt that job #1 in the investment game is performance. However, understanding and communicating performance – especially relative to client expectations – is perhaps even more important than the absolute return a client receives.
For example, in 2013, the S&P 500 gained 29.6%. But unfortunately, bonds, emerging markets, many foreign markets, and commodities such as gold all declined. Thus, the performance of the typical “diversified” portfolio came in well short of the stock market.
This is the time when clients, who tend to be emotional creatures when it comes to finance, usually forget their overall portfolio strategy. This is when “gain regret” comes in as clients, via the benefit of 20/20 hindsight, regret that they didn’t have all of their money invested in the U.S. stock market.
Having dealt with clients for a combined 130 years, Numetrix has learned that the keys to first attracting and then keeping clients for life boils down to three things: education, communication, and then, of course, more communication.
We believe that the degree of success both advisors and clients experience with our firm is directly proportionate to their understanding of the goals and objectives we strive to achieve within our programs.
Use Numetrix as a Resource
We also believe the more you, the financial advisor, knows about the markets, the economy, and our strategies, the better off everyone will be. It is for this reason that Numetrix provides the Resource Center for clients and advisors.
Here you’ll find market insights from our managers, research, performance data, strategy updates, and even our latest tweets – for those who really want to stay abreast of what the markets are doing.
Become More Efficient
Numetrix strives to help advisors be more efficient in their practices. By outsourcing at least a portion of your money management work to Numetrix, advisors have more time for client-facing efforts.
Reduce “Selection” and “Timing” Risks
Some of the most difficult decisions financial advisors face are which investment strategies and which managers to employ – and then when to make changes or adjustments.
It is important to recognize that these decisions are also part of an advisor’s risk paradigm. Simply put, advisors have traditionally been forced to take on both the risks of “selection” and “timing” themselves.
This is where Numetrix can help. One of our primary jobs is to alleviate the “selection” and “timing” risks by providing financial advisors with a suite of investment programs designed to:
- Select which money managers/programs to utilize within an allocation strategy
- Monitor the performance of the managers/programs relative to the stated objectives and benchmarks
- Adjust the use of managers/programs when appropriate
Each Numetrix program has a stated benchmark and then a more targeted internal objective. The Investment Policy Committee continuously monitors each program’s performance relative to our expectations. Should any strategy begin to deviate from expectations, the allocation will be adjusted internally.
Setting Client Expectations
There are times when a return of +2% is exceptional. And by the same token, there are times when a return of +15% is downright disappointing.
The key is to understand what type of return are “available” in a given market environment. For example, most investors would have considered a small loss during 2008’s Credit Crisis bear market to have been a positive outcome for the year.
Then there are years such as 2013 where a return of 10-15% would have been considered disappointing for stock market investors.
Therefore it is critical for both clients and advisor alike to set realistic expectations for their portfolios.
For example, if client’s objective is to produce an average annual return of 9% over a period of 15 years, they really don’t need to sweat every quarterly or even annual return. No, the more important goal is to ensure that the client’s returns remain on target with their goals each year.
Numetrix Portfolio Solutions
Through our affiliation with CONCERT Capital Management, Numetrix offers three distinct series of multi-manager, multi-strategy portfolio solutions.