Riskalyze continued expanding beyond its roots as a digital risk assessment tool with the reveal of new automated trading technology on Thursday at the fintech firm's annual Fearless Investing Summit in Boston.
Built in partnership with Flyer, a trading tools and infrastructure provider, Connected Trading digitally delivers trades across client portfolios to multiple custodians without spreadsheets, order file uploads or manual account allocations.
Rather than looking like a spreadsheet, Connected Trading looks more like an inbox of trades, surfaced by Riskalyze's Autopilot investment management technology, that advisers can swipe or click to make account decisions.
It can account for legacy positions an adviser can't sell, blend multiple models together, or it can simply use a client's current holdings as the target for the account.
Rather than using asset allocation targets to propose trades, as most rebalancing tools do, Connected Trading uses the "Risk Number" that Riskalyze assigns to clients to spot when accounts drift.
Riskalyze CEO Aaron Klein called Connected Trading the "worlds first end-to-end trading automation platform for advisers" that will "change everything" about trading.
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While a quarter of advisers outsource investment management to turnkey asset management platforms, the rest manage trades in-house, often hand typing trades into custodial platforms, Mr. Klein said.
"This is why studies show that the average adviser spends 14 hours a year per client doing manual operational work managing accounts," Mr. Klein said.
Even advisers using rebalancing software aren't using it effectively or can't get it to work.
"It's like a VCR in the era of Netflix," he said. "It is time for our industry to leave the 'be kind, please rewind' phase behind."
Flyer CEO Brian Ross said Connected Trading can help advisers save 80% of the time they now spend on trading for clients. Trade orders are processed as blocks at the same time to ensure each account gets the same price and the technology provides real-time visibility into orders across all accounts, asset classes and custodians.
"Now you can turn seven steps into one," Mr. Ross said.
At launch, Connected Trading is supported by Fidelity, Schwab, TD Ameritrade, Pershing and RBC.
Independent registered investment advisers can license Connected Trading, which is a now a part of Riskalyze's digital investing platform Autopilot, directly. Advisers operating under a corporate RIA at a broker-dealer must get the technology from the broker-dealer.
United Planners and Sigma Financial are the first broker-dealers partners, Mr. Klein said.
Beyond trading, Riskalyze executives also demonstrated a redesigned user experience for its core risk assessment tool and a new marketing kit that gives advisers personalized client videos, social media images, templates for brochures and presentations, and best practices around compliance.
Riskalyze also updated its Portfolio Stats product to give advisers deeper portfolio analytics — such as benchmarking, asset classification, regional exposure and risk-reward scatterplots — from within the Riskalyze platform. Advisers can now look up analytics on individual securities and model portfolios, and a new Portfolio Sandbox tool lets advisers preview the impact that changes will have on a portfolio before they execute trades.
The fintech, which Mr. Klein said is now a "comprehensive wealth management platform," also restructured its pricing. Smaller firms can get the basic features for $250 per month per adviser, while the expanded risk and analytics platform and marketing kit are part of Riskalyze Elite, which costs $350. Costs won't change for existing Riskalyze clients unless they choose to upgrade.
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Autopilot is an additional cost, but the new Connected Trading features are included within it for no additional fee.