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How Top Advisors Are Streamlining Alternative Investments, Scaling Their Business

While not all financial advisors are offering alternatives yet, many have made the jump. But as we all know, alternatives can be far more complex to manage than their traditional counterparts. So how are advisors managing these rather complex investments?

Here’s how top advisors are managing alternative investments for their clients – with almost no extra effort.

Traditional methods of tracking alternatives

The most popular way to this date to manage alternative investments is by manually tracking via spreadsheets. But as any advisor doing so will tell you, this is a time-consuming and highly tedious process. It’s also not sustainable.

Source: Unsplash

As clients’ interest in alternatives grow, and their portfolios become more complex, it soon becomes impossible for advisors to keep up via spreadsheets. So advisors look for alternative ways to manage alternatives.

But for advisors using resources offered through their firm, are they satisfied?

Average advisor satisfaction with current alternative investment solutions

As stated above, manual tracking is still the most popular method to manage alts.

There are, to some extent, some solutions advisors have used in recent years to aggregate alternatives.

Source: Unsplash

But as we’ve heard across the board from clients, most of the current solutions offered are very limited in their capabilities, and still require almost fully-manual work on the advisor’s end.

In fact, just 27% of financial advisors who use or plan to use alternatives are very satisfied with the alternative investments products and resources available through their firm.

How top advisors are managing alternatives with no extra effort

While most advisors are unsatisfied, others are scaling their business with alts without lifting a finger.

AltExchange's AdvisorVue client dashboard showing alternative investment performance details.
AltExchange’s AdvisorVue client dashboard.

Advisors using AltExchange platforms have the ability to: 

  • Bill on alternative investments. 
  • Offer investments in private equity, direct-owned real estate, hedge funds, and more.
  • Track, manage, and consolidate all clients’ alternatives portfolios in one place.
  • Provide comprehensive performance reporting metrics. 
  • Automatically collect and distribute tax documents. 
  • Send capital call notifications and reminders, and more.   

In addition, all clients gain free access to their own portal, InvestorVue, when their advisor signs up for AltExchange. This allows advisors to increase transparency and gain the trust of their clients so they can track their alternatives’ performance just like they do their stocks. 

If you’re an advisor looking to gain an edge in your business and provide a brokerage-like alts experience for your clients, please get in touch today.

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