Last month, CI’s Brokerage team published a competitive intelligence report on portfolio analysis tools and capabilities, grading the offerings of 18 coverage set firms and detailing best practices. The report also spotlights several firms from outside of the coverage set that offer unique experiences or capabilities. As a preview of the report, this Insights post will highlight two best-in-class firms, and discuss the value of robust benchmarking tools.
Ameriprise
Ameriprise features strong portfolio analysis capabilities via its Allocation and Goals interfaces. The Allocation interface housed within the Portfolio experience offers robust functionality. In addition to a largely standard Asset Allocation donut chart, an accompanying table allows clients to drill down to sub-asset- and holdings-level data. The table organizes data by broad asset class with expandable carets enabling clients to drill down to sub-asset classes and individual holdings. Offering a further level of detail, a Positions Allocation table below lists holdings and features columns that denote sub-asset class percentage breakdown of individual holdings. The experience defaults to a total relationship view and allows clients to easily toggle between accounts.
Meanwhile, the standalone Goals experience allows clients to compare portfolio holdings as well as style diversification to model portfolios developed based on goals and risk profiles. The tool allows for external account linking and integrates with the Total View account aggregator enabling clients to view simple positions and value information across many accounts.
Morgan Stanley
Morgan Stanley offers an excellent Portfolio Analytics experience with resources spread across several intrapage tabs. A Risk Assessment tab houses most of the firm’s sophisticated features. It begins by displaying a Review the Risk of Your Portfolio section that provides clients with a portfolio volatility score; it then encourages clients to select a Risk Profile benchmark ranging from Wealth Conservation to Opportunistic Growth. Selecting a model generates a gauge infographic comparing the client’s volatility score to the volatility of their selected model.
Farther down, the page features standout Asset Allocation Comparison and Hypothetical Stress Scenarios sections. The former compares the client’s portfolio allocation to the model they selected, and the latter allows clients to examine how their portfolio and selected model would react to significant market events: both hypothetical and historical.
Benchmarking Tools
Benchmarking can be one of the key portfolio analysis tools that allow brokerage customers to analyze fundamental elements, like asset allocation and risk level. The number of benchmarking options that firms provide ranges significantly with a couple of firms offering over 150 options, while many firms do not offer any or only provide a handful consisting of major indices. What is more, several standout firms offer clients custom benchmarks in relation to their risk profiles, strategies and time horizons. These best-in-class offerings empower investors to evaluate their portfolios deeply based on these key elements.
Explore our Insights page for more research on trends in brokerage and other industries. And to learn more about how CI’s subscription services can help your investing firm enhance its digital experience, check out our Online Brokerage Research Services.
Sam Marlowe
Sam Marlowe is a Senior Analyst on CI's brokerage team.