The world of wealth management is changing. A younger generation of high net worth and ultra-high net worth clients are demanding more customized portfolios and integration of personal values through vehicles like direct indexing and Separately Managed Accounts. As a wealth management firm – whether you are a CIO or an advisor – there’s increasing pressure to do more, with less.
Let us support you. Our scalable risk management and portfolio construction technology can help you meet the changing expectations your clients have.
What do wealth managers need?
A menu of model portfolios
To ensure the best ideas are captured with a minimum number of starting point building blocks
To manage client portfolios to the model, taking into account individual client preferences
Tax efficiency at scale
To scale cost-effectively and to maximize client quality of the solution relative to the human capital required for portfolios
To have risk models that are tailored to the client use case and investment universe across asset classes
What Axioma solutions can wealth managers access?
- Benefit from our flexible approach and implement high quality, tax efficient rebalancing at scale
- Create direct indexing solutions, tax efficient Separately Managed Accounts (SMAs) and multi-asset class model portfolios
- Accommodate personalization and mass customization across thematics, factors, ESG and important client restrictions
Risk and performance attribution analytics
- Get stress testing, flexible and sophisticated risk analytics on one platform for an integrated view of equity portfolio risk and return
- Identify exposures and sources of risk with factor and Brinson performance attribution, time-series and point-in-time risk analytics
How do wealth managers benefit from tax optimization and direct indexing solutions?
Personalization and customization
- Incorporate client views of ESG, impact, thematic & factor
- Use custom indices to build the strategy to the client’s investment and personal preferences
Scalable account management
- Tailor the portfolio to offset concentrations in employer stock or inherited securities
- Incorporate asset allocation strategies while managing Unified Managed Accounts (UMA)
- Recognize tax-netting opportunities across all portfolios while preventing potential wash sales
- Balance tax loss harvesting and model drift as either optimization targets or constraints
- Manage number of names owned, traded, as well as thresholds in the amount held or traded
How do Axioma solutions fit into wealth management workflows?
Tax loss harvesting while tracking a benchmark or portfolio
Transition legacy assets and minimize model drive and drag when rebalancing
Withdraw cash with minimal tax impact
Holistically manage a Unified Managed Account (UMA) that has sleeves which are taxable and non-taxable.