Kristoffer Fürst’s Post

Introducing our new Options Strategy Quantitative Portfolio (QP), developed by our quantitative asset management team, QRG, to help advisors and clients manage concentrated stock positions with flexibility. We remain focused on delivering solutions that can be customized to address any number of requirements within an investor's portfolio. This options-based strategy offers personalized tools, such as covered calls, protective puts, and collars, to address tax and market volatility risks while generating new income opportunities. With solutions to offset the risks of concentrated holdings—whether from inherited stock, large company positions, or long-term holdings—this QP equips advisors to navigate unique financial situations confidently. Our Options Strategy QP joins Envestnet's suite of Quantitative Portfolios—including Market Series, Factor-Enhanced, Sustainable, and Fixed Income QPs—combining the potential benefits of beta investing with managed account customization. Each QP empowers advisors to design custom portfolios that align with clients' unique goals and financial needs.

In the last decade, 2,000 new data fields have been added to compliance reporting requirements. No wonder Asset Managers are looking to automation to ease the pain of compliance. FE fundinfo took a deep dive into the current trends pushing the industry toward technology, and discovered the Efficiency Equation that balances costs and compliance so managers can get back to growth. Read the whitepaper today.

Introducing our new Options Strategy Quantitative Portfolio (QP), developed by our quantitative asset management team, QRG, to help advisors and clients manage concentrated stock positions with flexibility. We remain focused on delivering solutions that can be customized to address any number of requirements within an investor's portfolio. This options-based strategy offers personalized tools, such as covered calls, protective puts, and collars, to address tax and market volatility risks while generating new income opportunities. With solutions to offset the risks of concentrated holdings—whether from inherited stock, large company positions, or long-term holdings—this QP equips advisors to navigate unique financial situations confidently. Our Options Strategy QP joins Envestnet's suite of Quantitative Portfolios—including Market Series, Factor-Enhanced, Sustainable, and Fixed Income QPs—combining the potential benefits of beta investing with managed account customization. Each QP empowers advisors to design custom portfolios that align with clients' unique goals and financial needs.

Introducing our new Options Strategy Quantitative Portfolio (QP), developed by our quantitative asset management team, QRG, to help advisors and clients manage concentrated stock positions with flexibility. We remain focused on delivering solutions that can be customized to address any number of requirements within an investor's portfolio. This options-based strategy offers personalized tools, such as covered calls, protective puts, and collars, to address tax and market volatility risks while generating new income opportunities. With solutions to offset the risks of concentrated holdings—whether from inherited stock, large company positions, or long-term holdings—this QP equips advisors to navigate unique financial situations confidently. Our Options Strategy QP joins Envestnet's suite of Quantitative Portfolios—including Market Series, Factor-Enhanced, Sustainable, and Fixed Income QPs—combining the potential benefits of beta investing with managed account customization. Each QP empowers advisors to design custom portfolios that align with clients' unique goals and financial needs.

Introducing our new Options Strategy Quantitative Portfolio (QP), developed by our quantitative asset management team, QRG, to help advisors and clients manage concentrated stock positions with flexibility. We remain focused on delivering solutions that can be customized to address any number of requirements within an investor's portfolio. This options-based strategy offers personalized tools, such as covered calls, protective puts, and collars, to address tax and market volatility risks while generating new income opportunities. With solutions to offset the risks of concentrated holdings—whether from inherited stock, large company positions, or long-term holdings—this QP equips advisors to navigate unique financial situations confidently. Our Options Strategy QP joins Envestnet's suite of Quantitative Portfolios—including Market Series, Factor-Enhanced, Sustainable, and Fixed Income QPs—combining the potential benefits of beta investing with managed account customization. Each QP empowers advisors to design custom portfolios that align with clients' unique goals and financial needs.

Introducing our new Options Strategy Quantitative Portfolio (QP), developed by our quantitative asset management team, QRG, to help advisors and clients manage concentrated stock positions with flexibility. We remain focused on delivering solutions that can be customized to address any number of requirements within an investor's portfolio. This options-based strategy offers personalized tools, such as covered calls, protective puts, and collars, to address tax and market volatility risks while generating new income opportunities. With solutions to offset the risks of concentrated holdings—whether from inherited stock, large company positions, or long-term holdings—this QP equips advisors to navigate unique financial situations confidently. Our Options Strategy QP joins Envestnet's suite of Quantitative Portfolios—including Market Series, Factor-Enhanced, Sustainable, and Fixed Income QPs—combining the potential benefits of beta investing with managed account customization. Each QP empowers advisors to design custom portfolios that align with clients' unique goals and financial needs.

Here's another example of DiligenceAI (unedited output based on Form ADV data) A rapid increase in assets under management (AUM) can present several operational due diligence issues for asset managers. 17.2% of asset managers (2,680 out of 15,532) have experienced an increase in regulatory AUM of more than 25% between March 2023 and March 2024, with total AUM increasing from approximately $17.4 trillion to $24.0 trillion. This rapid growth can lead to the following concerns: Operational scalability: Asset managers may struggle to scale their operations effectively to handle the increased volume of trades, reconciliations, and reporting requirements. This can lead to errors, delays, or other operational issues. Investment process adherence: With a sudden influx of new capital, asset managers may be tempted to deviate from their stated investment process or take on excessive risk to deploy the funds quickly. This can lead to style drift or inconsistency in the investment approach. Compliance and regulatory challenges: Rapid AUM growth can strain compliance resources and increase the risk of regulatory breaches. Asset managers must ensure they have adequate compliance controls and oversight to handle the increased scale and complexity of their operations. Staffing and expertise: Asset managers may need to quickly hire additional staff to manage the increased workload. However, finding and integrating qualified personnel can be challenging, and there is a risk of compromising on quality or experience. Technology and infrastructure: The existing technology infrastructure may not be sufficient to handle the increased volume of data and transactions. Asset managers may need to invest in upgrading their systems and technology, which can be costly and time-consuming. Counterparty risk: With increased AUM, asset managers may have larger exposures to individual counterparties, such as brokers, custodians, or prime brokers. This can increase the potential impact of counterparty failures or disruptions. Liquidity management: Rapid AUM growth can make it more difficult for asset managers to maintain adequate liquidity, particularly in less liquid strategies. This can lead to challenges in meeting investor redemption requests or managing portfolio rebalancing. Valuation and pricing: With a larger asset base, valuation and pricing errors can have a more significant impact. Asset managers must ensure they have robust valuation processes and controls in place to handle the increased scale. Key person risk: The rapid growth in AUM may place increased reliance on key investment personnel, raising concerns about key person risk and succession planning. Operational due diligence teams should closely examine asset managers experiencing rapid AUM growth to ensure they have the necessary controls, resources, and infrastructure to handle the increased scale effectively while maintaining the integrity of their investment process and operations.

Key Shifts in Asset Management: Data, Analytics, and Automation Investment managers are prioritizing product quality and investor experience over cost control, according to a recent Northern Trust survey. Top Priorities: - Product Quality and Accuracy: 72% (up from 45% in 2022) - Investor Experience: 70% - Expanding Product Sets: 60% - Data's Importance: High-quality, consistent data is crucial for client understanding and decision-making. 83% of managers plan to change their product strategy, focusing on diverse investor needs. Challenges: - Data Clarity and Timeliness: Key issues for 44% and 42% of managers, respectively. - Outsourcing: 83% considering outsourcing for better data management. Balancing Costs and Innovation: To control costs while innovating, managers are: Rationalizing Products: 69% Consolidating Systems: 66% Investing in Automation and Technology: 60% This survey underscores the critical role of data management, analytics, and automation in the asset management industry's evolution. #buyside #datamanagement #portfolioanalytics

Artificial Intelligence is fundamentally reshaping the asset management industry, transforming everything from investment research and portfolio management to risk analysis and client reporting. This transformation is not merely about automation – it’s about augmenting portfolio managers’ capabilities, uncovering investment insights, and enabling more sophisticated investment strategies. #AssetManagement #investmentmanagement

I recently had the pleasure of speaking with Brian Ponte from Ignites about WisdomTree Asset Management’s strong momentum as an ETF Model Portfolio provider and some key trends propelling future growth. Some highlights include: + WisdomTree is closing in on $4 billion in model assets, up from $3.2 billion at the end of 2023. + Advisors and clients are largely wary of a single-issuer portfolio, we’ve deliberately crafted our product set to include both our ETFs and nonproprietary products. + Customization at the model-level is one of the largest emerging trends within the space—I think you'll also see growing interest in customized strategies within the sleeves of the models, such as direct indexing or tax-managed sleeves. Our goal at WisdomTree is to serve financial advisors as their strongest partner by offering a full range of Portfolio Solutions to help manage their client portfolios. Learn more about how WisdomTree’s Portfolio Solutions can empower advisors with tailored portfolios, expert insights and strategic support by clicking here: https://lnkd.in/eMJe4tD3 I want to thank Brian and Ignites for this opportunity! Read the full article here: https://lnkd.in/e55KnyVp