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Award-winning portfolio management: essential components for wealth managers and family offices

By Santiago Schuppisser, Chief Product Officer, Etops

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Etops empowers digitalization processes for the financial industry. Our solutions cover the entire value chain of private banks, asset and wealth managers, family offices and pension funds: from lead generation, CRM and on-boarding to portfolio management, compliance, and reporting

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by Etops
| 23/02/2024 12:00:00

Etops was recently honoured as the Winner of 2024 in the Portfolio Management Solution category by the WealthBriefing Award. This article delves into the essential components of an effective portfolio management system, exploring features such as strategy setup, model portfolio management, rebalancing, monitoring, and consolidated reporting for both liquid and illiquid assets, shedding light on what contributed to this prestigious recognition.

Step 1, Strategy setup:
A solid portfolio management process begins with a clear investment strategy. Wealth and asset managers must define investment objectives, strategic asset allocations, and bandwidths around the optimal target allocations based on their offerings and their investors’ goals. Flexibility in customising strategies is essential to accommodate different client needs and market conditions.

Step 2, Model portfolio management:
Efficient portfolio management involves creating and managing model portfolios tailored to client segments or investment strategies. The system should support the integration of investment research, asset allocation, and risk management techniques to simplify portfolio construction. With etopsOS, users can manage model portfolios using building blocks, thereby assigning responsibilities for specific allocations to different managers. Additionally, we allow you to add investment constraints on strategy, model and/or portfolio level.

Step 3, Rebalancing:
Regular portfolio rebalancing is necessary to maintain alignment with clients’ objectives and constraints. An effective system automates rebalancing, allowing for timely adjustments based on deviations from target weights or market changes, ensuring portfolios remain on track.

Step 4, Monitoring:
Continuous monitoring of portfolio performance and risk metrics informs investment decisions. The system should provide real-time tracking of performance, risk exposures, and compliance with regulatory requirements, enabling proactive risk management. With our wealth discovery app, users can monitor client portfolios comprehensively throughout the year, including crypto assets. Book a demo to experience it!

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