Riskalyze announced the launch of “drag-and-drop portfolio integration” inside its Riskalyze Pro product.
Advisers can now pretty simply bring portfolio data in for their clients from several custodial platforms as well as hundreds of broker-dealers. For now that includes three of the big-four platforms: Fidelity WealthCentral, Pershing NetX360 and TD Ameritrade Veo, and the scrappy, innovative custodian TradePMR. And among broker-dealers are the giants LPL Financial and National Financial.
Riskalyze founder, Aaron Klein, said that others are being added now. He added that if an adviser needs help with another custodian's file they can e-mail Riskalyze support for help, which is being turned around within 24 to 48 hours.
In a nutshell, this feature takes advantage of the ability to export an Excel or CSV file containing a client's holding to your desktop. You open that client's profile in Riskalyze.
For those unfamiliar, Riskalyze has a patented Risk Fingerprint technology that it streamlined significantly by working with thousands of investors through use of a free tool. That was before introducing a Pro tool specifically for advisers in Dec. 2012 ($99 per month for the full-feature set, though there is a limited set of free tools to get you hooked and wanting more).
In simplest terms, an adviser signs up with the service and can share a link with clients from their own firm's website.
Clients go into the Riskalyze system from there and answer some very simple, intuitive questions (and at times, seemingly counterintuitive questions — though those questions are crazy like a fox) that add information that can be quantitatively crunched into a measure of risk tolerance.
The output generates a report that the adviser can share with clients when building an appropriate portfolio. And in case of an audit, the adviser also can generate client risk-tolerance reports easily for regulators.