Differentiate your fiduciary practice

As competition increases and being a fiduciary becomes table stakes, there are other things you can do to distinguish the value and services you provide. We see portfolio construction as a differentiating discipline for this new world.

GET YOUR FIDUCIARY TOOLKIT

Jun 2, 2017

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    If you’re already acting as a fiduciary, you may want to think about how the shifting landscape and growing competition impacts the value you deliver to your clients, and how you talk about it. 

    With some competitors charging around 30bps, there is a real threat to any advisor who charges more and can’t articulate WHY. We believe there are many ways you tangibly add value. I would like to highlight one of them: your portfolio construction process, including investment selection.

    We believe portfolio construction – and how you talk to your clients about risk – should be a part of more of your conversations. We’ve found that investors who feel better informed about the risks they are taking are nearly 4X more satisfied with their advisor. Clients are also likely to invest more cash; nearly 2/3rds stating they would do so with a better understanding of risk.

    BlackRock’s Portfolio Solutions group is uniquely positioned to see and analyze risk. Through working with thousands of advisors each year, we are able to identify and share portfolio insights that can help you build better portfolios aligned to your clients’ goals and objectives. 

    Properly implementing your views on risk is critical to a disciplined investment selection process. Draw on the best practices we see from top institutional investors and advisory firms including questions to ask in a due diligence process and considerations for managing a portfolio’s tax efficiency. Whichever tactics are right for your business, make sure you and your team are able to articulate them to your clients and that they align with your value proposition. 

    From defining your value to talking more fluently about risk, from seeing more portfolio trends to managing a more disciplined investment selection process, BlackRock can help you. We are committed to seeing the nimble advisor thrive in an increasingly fiduciary world.

Delivering value through portfolio construction

In a world of increased market risk and heightened focus on delivering the best value to clients, portfolio construction is becoming more difficult - but also more important.

We see successful advisors meeting this challenge by implementing a disciplined process that is conducted in an ongoing and documented manner.

Access our suite of portfolio construction resources

Enhancing your due diligence process is one step you can take to improve portfolio construction. Our guides can help you document your investment selections, following the rigorous questions asked by experienced institutions.

Download our due diligence worksheet for models

Download our due diligence worksheet for ETFs

Download our due diligence worksheet for mutual funds

Talk to your clients

Articulate risk

Based on BlackRock's most recent investor pulse survey, two-thirds of investors who use financial advisors would invest more if they had a better understanding of risk. Providing clients with greater education may help them feel more comfortable putting cash to work. Read more

Additionally, the survey found that clients who better understand risk in their portfolio are significantly more satisfied with their advisor. See how BlackRock can help you go deep on risk and talk about it with your clients. Read more

Leverage our portfolio insights

In the thousands of portfolios we analyze every year, our portfolio solutions team identifies insights that can help you take action to keep your clients on track.

Regain balance with bonds: Many portfolios today are built based on market trends and best ideas, but have imbalanced risk. Read more

Rethink income strategy: When playing chess, strategy is everything... the same is true for your income portfolio. Read more

Narrow the growth gap: How can investors find growth in markets destined for lower returns and higher volatility? Read more

Discuss the markets

Keeping apprised of market insights can lead to more rewarding conversations with clients and help them reach their investment goals.

Broadening reflation: The increasingly broad-based and synchronized global recovery is buoying corporate earnings abroad. Learn more

Low returns ahead: While U.S. growth prospects have improved, they remain lackluster compared with historical norms. Learn more

Diversifying differently: Though markets have remained largely unfazed by political uncertainty, volatility is subject to sporadic outbursts that can wrong-foot investors. Learn more