If this tool doesn’t blow your mind, please reach out to me and tell me why.
What is a portfolio optimizer? Well, let’s start by defining what portfolio optimization is:
It’s when a firm reviews its investment models, looks at the data, and then rebalances to “optimize” them. This is typically done monthly or quarterly depending on the model.
Rebalancing for most is a manual process. Firms collect, read, and digest data, and then make decisions on what assets should stay or be replaced, and what new assets should be added. The NEW OnPointe AI portfolio optimizer will do all the work in less than 60 seconds.
OnPointe’s New AI Portfolio Optimizer—A True Game Changer
To watch an overview video of how the tool works (NO SIGN-UP FORM), click on the following:
https://onpointesoftware.com/portfolio-optimizer
What will the new AI portfolio optimizer do?
1) Take a lead’s existing holdings and indicate what it doesn’t like about them and make suggestions for a more “optimized” mix of holdings.
2) Suggested holdings can be any publicly available stock, ETF, and/or mutual fund.
3) Create a new/unique portfolio for a client made up of SMAs (separately managed accounts) (these SMAs could be in-house strategies and/or ones from a TAMP or 3rd party signal provider).
4) Incorporate the use of FIAs (Fixed Indexed Annuities) to improve portfolios.
5) Optimize based on Sharpe Ratio, Calmar Ratio, Risk Scores, and many more metrics.
6) Ask the tool to create a client letter explaining why the client’s current portfolio isn’t very good and why the new portfolio mix is better. The client letter capabilities will blow your mind.
Optimizer Example
I ran an example using the 3rd party manager strategies at our “advisor-owned” RIA AdvisorShare Wealth Management. I asked the tool to look through 31 different SMAs and optimize for a Risk Score of 35-45, to use 4-5 custom assets, and for the best Calmar Ratio (best risk-adjusted returns) it could come up with. The following are assets it chose and the metrics.
Returns used go back 10 years. Having a Calmar Ratio above 1.0 is rock star status.
Portfolio Optimization with FIA
This new AI tool will optimize using FIAs. For those who are not using FIAs or wonder if FIAs can help with optimization, you now have a tool that answers the question.
I asked the tool to re-run and see if an FIA with a 9% annual pt-to-pt using the default S&P 500 crediting would improve the numbers. Here is the new optimization:
The risk score didn’t change, but the CAGR was slightly increased, the drawdown was slightly decreased, and the Calmar ratio improved by 16.29%.
It’s Time to dump Riskalyze, Hidden Levers, Etc.
Most advisors are frustrated with the risk program they are using. I don’t blame them. If you are one of them and need an excuse to change to a better program, our NEW AI tools should push you over the edge.
Live Demo of OnPointe Risk
If you would like to jump on Zoom for a live one-on-one demo to see the full power of OnPointe Risk and why it’s light years ahead of other risk programs, click on the following to sign up:
https://onpointesoftware.com/risk-demo
RoccyKnows YouTube Channel
https://www.youtube.com/@RoccyKnows
Last week I announced that I started a YouTube Channel. My first video was on why consumers need to stay away from Millionaire Roth IRA conversion “guru” Craig Wear.
I plan on launching a new video every week, and my newest video is on LTC options, including the NEW Immediate Care Plan/medically underwritten annuity. To watch the video, click on the following:
