Demonstrating how easy it is now for tiny companies to create software applications to investment advisors, Kwanti, a small firm in Mountainview, California, says hundreds of advisors are using its Portfolio Lab app for risk analytics.
Portfolio Lab, which costs $149 a year, allows advisors to back test portfolios, benchmark portfolios against custom benchmarks, and test portfolio strategies.It's meant to be used in client acquisition by showing diversification shortcomings of a prospect's portfolio, demonstrating how you would enhance return and lower risk by optimizing a portfolio's asset allocation, and producing portfolio proposals that can be delivered in PDFs.
"We use the best technologies to make the power of institutional-grade analysis understandable and intuitive," says Christophe Gauthron, CEO of Kwanti, in a recent press release. "Portfolio Lab sets new standards of technology, elegance of user interface, and affordability."
The latest version of Portfolio Lab offers:
"Faced with market volatility and increased correlations, advisors tell us they want highly efficient tools to construct diversified portfolios and demonstrate solutions to clients," Gauthron continued. "This is why Portfolio Lab is being used more and more with no learning curve to complement the established platforms."
I have not tested Portfolio Lab's optimizer but its online demo shows a simple yet useful portfolio analytics tool that can be used by advisors inexpensively in client acquisition and portfolio analysis.
Gauthron is a Level 3 CFA candidate with a background in software engineering. Over the past decade, it has become more common for an entrepreneurial developer to build a software app that fills a specific niche and gain a following. This is a great trend for investment advisors because it increases competition in the advisor technology business and gives advisors more choices.
It's amazing how the technology business has been transformed in the last 10 or 15 years as programming has become easier and uses more standardized components.