In the current economic climate, uncertainty is the only certainty. Concerns about government gridlock, inflation, deflation, unemployment, deficits, and global markets produce high volatility and frequent market corrections. How can asset managers manage this systemic risk?
Tactical asset allocation, provides a proactive approach for addressing today’s volatile market. It has become consensus opinion that tactical asset allocation is a more dynamic, forward looking approach to portfolio management than strategic asset allocation.
The challenge for advisors is how to effectively implement tactical asset allocation strategies. A study by Advisor Benchmarking shows tactical advisors spent 75% more time on portfolio management than strategic advisors. The most time consuming aspects are: 1) how to conduct the research required for an active strategy and 2) how to implement the strategy across all of you accounts.
The research needed to effectively maintain a tactical ETF asset allocation can be onerous for a small firm. Hence, there is a growing trend for asset managers to leverage ETF model strategists for specific strategies, a UMA-like approach. This outsourced approach to asset management is efficient and can increase performance results.
Not surprisingly, tactical managers trade more frequently than strategic managers. A portfolio modeling and trade management system can reduce errors and significantly decrease the time to implement a strategy. Using BlazePortfolio’s ATOM software, asset managers can streamline the management of tactical and strategic models. The enhanced efficiency can result in a more scalable practice.
ATOM clients can easily assign or import trading signals directly into models, rebalance thousands of accounts, review trades and execute the trades electronically to multiple brokers in milliseconds.
To learn more about ATOM please contact BlazePortfolio today # 773-935-2470 or firstname.lastname@example.org